Analyst at MKM Partners reiterated his Buy ratings on Amazon (AMZN) stock ahead of second quarter results
Amazon.com, Inc (NASDAQ:AMZN) is set to disseminate earnings report for the second quarter of this year on July 21 after the market closes. In this regard, analyst at MKM Partners Rob Sanderson published a research note today, sharing his bullish sentiments on the stock ahead of second quarter earnings. The analyst reaffirmed his Buy rating and a 12-month price target of $850 on the stock.
Although the analyst remains bullish on the Seattle, Washington based e-commerce giant’s overall performance and long-term growth targets, Mr. Sanderson suggested that the expectations are conservative for the second quarter specifically. MKM Partners analyst said: “We think consensus is most likely too low, particularly on international growth and AWS margins.”
In the view of Mr. Sanderson, Amazon’s “Prime Flywheel” appears to be gaining international fame and hold market share on a global level. The second Prime Day is expected on July 12 and is likely to be a source of upside during the third quarter, across the world. Mr. Sanderson added: “We continue to view Amazon as the best long-term growth story available to investors today.”
The stock hit a new all-time high yesterday, with gaining about 10% since the start of this year through July 7. Although the global economic scenario shows sluggish performance, the company has shown commendable performance despite the Brexit (Britain’s exit from European Union) doom and gloom. Earlier this week, Robinson Humphrey, analyst at SunTrust, raised his price target on Amazon stock to $775 from $710 and reiterated his Neutral rating on the stock.
Amazon stock is covered by 47 analysts at the Wall Street and out of these a substantial majority of 42 analysts believe that the stock should be added in the investment portfolios, while the remaining analysts suggest a Hold. Furthermore, none of the analysts rate the stock as a Sell. As of 12:07 PM EDT, the stock is currently trading at $743.92, up about 1% against today’s opening price.