Amazon.com upgraded to "outperform" - update

25.07.07 - RBC Capital Markets

NEW YORK, July 25 (newratings.com) - Analysts at RBC Capital Markets upgrade Amazon.com (AMZN) from "sector perform" to "outperform," while raising their estimates for the company. The target price has been raised from $75 to $99.

In a research note published this morning, the analysts mention that the company has posted its 2Q revenues ahead of the estimates and the consensus due to the robust performance of the North American EGM and Media segments. Amazon.com?s gross margins were ahead of the estimates, the analysts say. The company has issued its revenue and GAAP operating margin guidance for 3Q at $3.0-$3.175 billion and 2.5%-3.5%, respectively, ahead of the consensus. The EPS estimates for 2007, 2008 and 2009 have been raised from $1.32 to $1.53, from $1.72 to $2.25 and from $2.00 to $3.33, respectively.