Bank of America/Merrill Lynch analyst Justin Post this morning raised his rating on Amazon.com (AMZN) to Buy from Neutral ahead of the company’s September quarter results, which are due after the close this afternoon. Post is particularly bullish on Q4, anticipating strong holiday season sales. Post raised his price target on the stock to $190, from $176.
Post notes that eBay had 2% sequential growth in gross merchandise value in Q3, the same as a year ago, while Google had 8% sequential growth in Q3, also the same as a year ago. If the same pattern follows with Amazon, and they have the same 17% sequential growth in Q3 that they had a year ago, the company would have $7.7 billion in revenue, ahead of the Street at $7.4 billion.
Post also thinks Kindle sales are strong; he thinks the company could sell more than 3 million of the e-book readers in Q4. (But who can tell, since Amazon doesn’t disclose sales information on the Kindle.)
And he thinks the company is well positioned to take incremental market share in e-commerce.
AMZN is up $5.62, or 3.5%, to $164.29.
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