Amazon (AMZN) PT Raised to $1050 at Goldman Sachs Into Q3 Print

In a note to clients this morning, Goldman Sachs analyst Heath Terry reiterated his Conviction Buy List rating and raised his price target on Amazon.com (NASDAQ: AMZN) to $1,050.00 (from $920.00) ahead of Q3 results on 10/27 after the close.

The firm sees revenue of roughly $33 billion, versus the consensus of $32.7 billion, as slight acceleration in AWS offsets deceleration in eCommerce. They expect adjusted operating income of $1.42bn, implying 4.3% margins.

For AWS, they expect +60% yoy growth in revenue in 3Q. For eCommerce, they expect N. America revenue growth of 27% in 3Q (28% in 2Q) and international growth of +28.4% ex-FX vs. +28% ex-FX in 2Q.

On guidance, they expect the company to guide to $43-46 billion in revenue (+20-29% yoy) and $1.0-$2.0 billion in GAAP operating profits.

"At 20X 2017E cash EPS vs. +23% FX-neutral sales growth in 2017E, we believe the risk/reward remains favorable as investments in web services, infrastructure, and logistics result in share gains, cash flow growth, and continued high returns on investment," he said.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $818.99 yesterday.

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