While many investors are pulling out of Amazon (AMZN) stock, Tigress Financial’s Ivan Feinseth is going in. He sees this moment as an opportunity to buy. Feinseth suggests Amazon’s distribution strength and fulfillment platform is accelerating the growth of its global footprint. As Prime’s membership continues to grow and drive retail expansion, the brick-and-mortar retail presence grows too. The analyst also applauds the company for supporting new business and driving opportunity for web hosting, data mining, and management services. Moreover, Feinseth notes the company continues to drive increasing return on capital, which will drive further gains for its share price. Ultimately, he believes the stock has a significant upside at play. He reiterates a Buy rating.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Ivan Feinseth has a yearly average return of 16.6% and a 68% success rate. Feinseth has a 32.5% average return when recommending AMZN, and is ranked #90 out of 5,130 analysts.
“For the 12 months ending September 2018, Net Sales Revenue increased 37.1% Y/Y from $161.2 billion to $220.9 billion. We forecast a further increase of almost 20% to $265.1 billion. Economic Operating Cash Flow (EBITDAR) increased 57.2% Y/Y from $35.7 billion $256.2 billion over the LTM. We forecast a further increase of 24.8% to $70.1 billion over the NTM. Net Operating Profit After Tax (NOPAT) increased 337% Y/Y from $2.53 billion to $11.1 billion over the LTM. We forecast a further increase 52.2% to $16.83 billion over the NTM. Return on Capital (ROC) increased from 4.19% to 12.02% over the LTM. We forecast a further increase to 15.24% over the NTM. Economic Profit continues its uptrend after turning positive for the TTM last quarter increasing over 1200% Y/Y from a loss of $323.2 billion to $3.68 billion over the LTM. We forecast a further increase of 26.8% to $4.67 billion over the NTM. AMZN is starting to drive accelerating Economic Profit growth as ongoing investments in existing core businesses and new verticals continue to drive increasing returns,” Feinseth said.
It seems that Feinseth isn’t the only bull on Wall Street when it comes to Amazon. TipRanks has looked over the ratings of 37 analysts and 36 consider this stock a Buy, while just one is sidelined. With a price target of $2,163.97, there’s an upside of about 28%. Is this what Amazon’s worst day looks like? (See AMZN’s price targets and analyst ratings on TipRanks)