Amazon.com "hold," target price reduced

01.02.08 - McAdams Wright Ragen

NEW YORK, February 1 (newratings.com) - Analyst Dan Geiman of McAdams Wright Ragen reiterates his "hold" rating on Amazon.com Inc (AMZN). The target price has been reduced from $90 to $80.

In a research note published this morning, the analyst mentions that the company has posted robust 4Q07 results, with the EPS in-line with the estimates and the consensus. Amazon.com?s revenues were significantly ahead of the estimates and the consensus and the revenue growth of 42% was the highest in 2007, McAdams Wright Ragen says. Amazon?s margins were short of the expectations due to an unfavourable shift in the sales mix and a decline in prices, the analyst adds. The company?s share price is unlikely to appreciate significantly in 2008 due to limited margin improvement, the analyst states.