Amazon.com "sell," target price reduced - update

31.01.08 - BWS Financial

NEW YORK, January 31 (newratings.com) - Analyst Hamed Khorsand of BWS Financial maintains his "sell" rating on Amazon.com Inc (AMZN). The 12-month target price has been reduced from $65 to $57.

In a research note published this morning, the analyst mentions that the company has posted 42% y/y revenue growth and sequentially flat operating margins for 4Q. Due to its size, Amazon.com has become more sensitive to the general economic environment than it was in the past, the analyst says. BWS Financial considers the company?s sales guidance for 2008 as aggressive. The downward revision in the target price reflects a lower premium at which the company?s stock is expected to trade to that of its peers, the analyst adds.