In a research report sent to investors, RBC Capital analyst Mark Mahaney maintained an Outperform rating on Amazon (NASDAQ:AMZN) and reduced the price target to $410 (from $420), which represents a potential upside of 34% from where the stock is currently trading.

Mahaney explained, “We are reducing our 2015 and 2016 AMZN estimates, entirely driven by increasingly material FX headwinds. We now believe that the company will face 15% Y/Y FX headwinds in the first three quarters of 2015. Specifically, we have reduced our 2015 and 2016 revenue estimates by 4%, and we have reduced our CSOI estimates by 6%–7% due to a cost structure tilted toward the USD. No change to our Q4 estimates, however.”

The analyst added, “Based on intra-quarter data points, our channel checks, and our model sensitivity work, we believe Street estimates for the December quarter are reasonable, although deteriorating currency trends are likely to upend Street estimates for the March quarter.”

Amazon.com, Inc. operates as an online retailer in North America and internationally. The company serves consumers through retail Websites, such as amazon.com and amazon.ca, which primarily include merchandise and content purchased for resale from vendors and those offered by third-party sellers.