Monday, January 31, 2011

Susquehanna Likes Amazon.com (NASDAQ:AMZN) on International Growth, Groceries and Apparel

Amazon.com (NASDAQ:AMZN), even after a sub-par quarter for them, is still an attractive company to invest in, according to analysts, who mostly see the company continuing to grow, with Susquehanna believing international growth, along with growth in apparel and groceries will propel the online retailer forward.

Susquehanna said that "while margins have been frustrating since 3Q, the top-line was also a touch below estimates this quarter. Weaker than expected international results can be attributed to weather-related delivery problems in the UK, which meant some lost sales and tough Y/Y comps."

They believe the first quarter of 2011 for Amazon.com will show strong growth.

Even so, Susquehanna is keeping their "Neutral" rating on Amazon.com, which closed Friday at $171.14, dropping $13.31, or 7.22 percent. Susquehanna boosted their price target on Amazon from $170 to $202.

Susquehanna is reiterating their Neutral rating on Amazon.com (NASDAQ:AMZN) as the firm feels that the only reason the company beat their estimates was the lower than anticipated tax rate.

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