Amazon.com "outperform," target price reduced

01.02.08 - Credit Suisse

NEW YORK, February 1 (newratings.com) - Analyst H Terry of Credit Suisse maintains his "outperform" rating on Amazon.com Inc (AMZN), while reducing his estimates for the company. The target price has been reduced from $120 to $95.

In a research note published yesterday, the analyst mentions that the company has reported mixed 4Q results, with revenues ahead and EPS in-line with the consensus. Amazon.com has crossed the $1 billion mark in free cash flows for the first time in its history, the analyst says. The company has guided to continued growth in its revenues and cash flows in 2008, while a higher GAAP tax rate is expected to restrict its earnings for the year, Credit Suisse adds. The EPS estimate for 2008 has been reduced from $1.59 to $1.54.