Analysts are weighing in today on online retail giant Amazon.com, Inc. (NASDAQ:AMZN) and internet giant Yahoo! Inc. (NASDAQ:YHOO). Here’s a quick roundup of today’s bullish brokerage notes on AMZN and YHOO.
With Amazon preparing to release fourth-quarter earnings after the close on Thursday, RBC Capital analyst Mark Mahaney weighed in today with his prediction. The analyst reiterated an Outperform rating on shares of Amazon, with a price target of $775.
Mahaney wrote, “Based on intra-quarter data points, channel checks, and model sensitivity work, we believe Street ests. for Q4 are reasonable, with a modestly positive upside bias. In terms of Q1:16 outlook, we view Street March quarter Rev/CSOI ests. as bracketable.”
“We expect $36B in revenue, $1.63B in CSOI, and GAAP EPS of $1.22. Our revenue est. is in-line with consensus, but above the midpoint of guidance, while our GAAP EPS est. is lower than consensus of $1.58. We would note that Amazon has not posted topline results above guidance/Street in Q4 since 2009,” the analyst continued.
According to TipRanks.com, a platform that tracks and ranks analysts on their predictions, analyst Mark Mahaney has a yearly average return of 18.4% and a 57.2% success rate. Mahaney has a 35.7% average return when recommending AMZN, and is ranked #11 out of 3593 analysts.
In a research report released yesterday, Pivotal Research analyst Brian Wieser upgraded shares of Yahoo! from a Hold to a Buy rating, while slightly reducing the price target to $36 (from $37), which implies an upside of 19.5% from current levels.
In explaining his positive Buy rating Wieser noted, “Although we are raising our recommendation from Hold to Buy on a slightly lower price target and an even lower trading price, an upgrade seems appropriate at this time in part because we think that circumstances are sufficiently dire for the company that changes which should unlock value are much more likely now than was the case a few months ago.”
Furthermore, “Yahoo’s situation has gone from bad to worse in recent quarters, with poor choices at both Board and senior management levels compounding bad luck. With virtually no support for either body within the investment community, activist investors are well-positioned to engineer changes in the coming months, or otherwise provoke management (or the Board) to make changes or announce significant initiatives that would help to catalyze the stock’s price higher.”
Analyst Brian Wieser has a yearly average return of 12.7% and a 73% success rate, according to data compiled by TipRanks.com. Wieser has a 23.6% average return when recommending YHOO, and is ranked #144 out of 3593 analysts.
The overwhelmingly majority of analysts remain Neutral on YHOO. The average forecast is for the stock to hit $44 in the coming months.