Amazon.com upgraded to "outperform" - update

25.07.07 - Credit Suisse

NEW YORK, July 25 (newratings.com) - Analysts at Credit Suisse upgrade Amazon.com Inc (AMZN) from "neutral" to "outperform," while raising their estimates for the company. The target price has been raised from $45 to $100.

In a research note published this morning, the analysts mention that the company has posted its 2Q results ahead of expectations. Amazon.com has raised its operating income guidance, including intangible and SBC amortisation of $185 million, for 2007 from $463-$593 million to $540-$640 million. The upgrade in rating reflects the potential for additional third-party growth in Europe, robust free cash flow generation and acceleration in domestic growth, the analysts say. The GAAP EPS estimates for FY07 and FY08 have been raised from $1.04 to $1.09 and from $1.32 to $1.54, respectively.