Piper Jaffray analyst Gene Munster released a research report today on Amazon.com, Inc. (NASDAQ:AMZN), maintaining an Overweight rating on the stock, and raising the price target to $520 (from $425). The report comes ahead of September guidance catalyst, leading Munster to believe that investor focus will shift towards revenue growth during the remaining quarter. Shares of AMZN are currently trading at $433.31, up $2.32, or 0.54%.

Munster wrote, “While the easy money on AMZN is off the table, we continue to believe that shares can move meaningfully higher as there remains one quarter (Sept) of margin expansion above Street and buyside expectations.” Furthermore, We believe that estimates are due to go higher and that as we move to the Jun-15 report and Sep-15 guide that investors will increasingly become aware of this. While we believe that there is a multi-year operating margin expansion story for Amazon, we note that margin expectations for the Dec-15 quarter are more inline with what Amazon has displayed thus far. Therefore, we believe that investors will refocus on top-line growth after the company reports Sep-15 results and guides for Dec-15.”

“As mentioned above, we believe that investors will focus less on margins, though they will still be very relevant to the story, and will pay increasing attention to Amazon’s revenue growth.”, the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gene Munster has a total average return of 26.8% and a 69.9% success rate. Munster has a 25.5% average return when recommending AMZN, and is ranked #2 out of 3610 analysts.


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