Amazon.com "buy," target price raised

24.04.08 - Canaccord Adams

NEW YORK, April 24 (newratings.com) - Analyst Domenic LaCava of Canaccord Adams maintains his "buy" rating on Amazon.com Inc (AMZN), while raising his estimates for the company. The target price has been raised from $78 to $93.

In a research note published this morning, the analyst mentions that the company posted its 1Q results ahead of expectations, aided by lower-than-anticipated content and technology spending and increased revenues from the international segment. Amazon.com raised its revenue guidance for 2008 from $18.75 billion-$19.75 billion to $19.1 billion-$20.0 billion. The company continues to post impressive earnings growth benefiting from incremental margin expansion, Canaccord Adams says. The EPS estimates for FY08 and FY09 have been raised from $1.51 to $1.52 and from $2.04 to $2.11, respectively.