Amazon.com "outperform," target price raised

24.10.07 - RBC Capital Markets

NEW YORK, October 24 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Amazon.com Inc (AMZN), while revising their estimates for the company. The target price has been raised from $99 to $113.

In a research note published this morning, the analysts mention that the company has posted its 3Q07 revenues and operating margins ahead of the estimates. Growth in Amazon.com?s North American Media segment continued to accelerate in the quarter and the company has raised its revenue guidance for 4Q07 from $4.9-$5.2 billion to $5.1-$5.45 billion. The upward revision in the target price reflects a shift in the base year, the analysts say. The pro forma EPS estimate for 4Q07 has been raised from $0.61 to $0.63. The pro forma EPS estimate for 2009 has been reduced from $3.33 to $3.29.