Amazon.com Downgraded To Hold

Benchmark has published a research report on Amazon.com AMZN and has downgraded the company to Hold. In the report, Benchmark writes "We lower our rating on Amazon (AMZN-PT$165) from Buy to Hold because we believe the 25% run-up in its share price since August 31 versus a 14% gain for the NASDAQ Composite Index has extended Amazon's valuation (47x 2011E EPS) to the high-end of its historical range despite moderating consumer demand, tougher comparisons, heavier promotional activity in retail and increased investment spending which may pressure margins, earnings and cash flow. We cut our Internet sector rating from Overweight to Market Weight because the rebound in Internet growth appears to have hit a plateau. The growth rates for US eCommerce ceased accelerating, but remain stable as evidenced by comScore reporting domestic August non-travel ecommerce sales up 8% y/y and MasterCard SpendingPulse showing online spending up 8% y/y in September." Benchmark maintains its $165 price target for Amazon.com, which closed yesterday at $156.48.