Maxim’s Tom Forte sees more upside potential in Amazon.com, Inc. AMZN and recommends that investors buy the stock at the current levels.
Forte maintained a Buy rating on the company, while raising the price target from $825 to $940.
Efforts Paying Off
The analyst believes Amazon “continues to increase its sphere of influence,” which would enable the company to “disrupt the retail and technology sectors.”
The company has also made several announcement regarding progress on various initiatives, including the Internet of things, expanding its physical footprint and logistics, as well as adding new market for the online grocery delivery service, AmazonFresh.
In addition, Amazon is “offering new proprietary hardware that expands its Alexa effort,” which Forte explained is “a virtual assistant leveraging artificial intelligence and cloud computing technology.”
Estimates Raised
The analyst expressed confidence in the ability of these efforts, collectively, being able to drive sales and adjusted EBITDA margin expectations higher for Amazon.
The sales estimate for 2017 has been raised from $166 billion to $168 billion, while the adjusted EBITDA estimate for 2017 has been raised from $19.1 billion to $19.3 billion.
The EPS estimate for 2017 has been raised from $8.49 to $8.64.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.