Amazon's Profitability Set to Rise on Favorable Trade Costs, Oppenheimer Says

MT Newswires Live06-20

Amazon.com (AMZN) will see improved gross margins driven by a more favorable trade cost environment, while revenue estimates remain largely unchanged, profitability will increase, Oppenheimer said in a note emailed Friday.

The company's e-commerce business continues to outgrow broader retail sales and has shown sustained market share gains, even if the pace has slowed slightly from the long-term trend, according to the note.

A more favorable tariff environment is leading to improved gross profit and earnings before interest and tax projections for Amazon's e-commerce segment, the firm added.

Oppenheimer said that Amazon is deepening its digital advertising footprint through Prime Video by forging partnerships with Roku (ROKU) and Disney (DIS) and the expanded reach enhances its long-term position in the ad market.

The firm raised its price target on Amazon's stock to $250 from $215 with an outperform rating.

Price: 211.03, Change: -1.49, Percent Change: -0.70

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment