Amazon.com downgraded to "hold"

31.01.08 - Jackson Securities

NEW YORK, January 31 (newratings.com) ? Analyst Brian Bolan of Jackson Securities downgrades Amazon.com Inc (AMZN) from "buy" to "hold." The target price has been reduced from $110 to $68.

In a research note published this morning, the analyst mentions that the company has posted its EPS for the previous quarter short of the estimates, with gross margins significantly short of the estimates for the second successive quarter. The downgrade in the rating primarily reflects weakness in gross margins, which are unlikely to improve significantly during 2008, the analyst adds.