Janney Capital Markets has a mixed call on Amazon.com Inc. (NASDAQ: AMZN) today. The firm is maintaining its Buy rating and its $230 price target objective on the online retail giant. Unfortunately, it is also trimming margins lower. Some summary notes from the Janney research note are as follows:
- “We fully expect AMZN’s digital investments to be longer and deeper…”
- Amazon will continue to invest in content, devices and “hub” including the potential launch of a SmartPhone in the second half on top of a Fire tablet refresh in the first half
- “Lowering our 2012 CSOI margin by about 50 basis points ($300M to $1.73 billion) and 2013 by about 100 basis points ($783 million to $2.69 billion) as digital investments are expected to be longer and deeper…”
- Another positive: estimate the Kindle Fire installed base could reach 15 million units by end of fiscal year 2012
Amazon.com shares are down 1.5% at $179.95 on the day and the 52-week trading range is $160.59 to $246.71. The Thomson Reuters consensus price target is above $236.00 for Amazon.
Top Gaining Stocks
Top Losing Stocks