Amazon.com stock rises on 4Q outlook
Shares of Amazon.com Inc. edged higher in electronic trading ahead of the market opening Wednesday as a Kaufman Bros. analyst raised his rating on the stock, saying he expects the Internet merchant had a strong fourth-quarter performance.
The Associated Press
Shares of Amazon.com rose Wednesday as a Kaufman Bros. analyst raised his rating on the stock, saying he expects the Internet merchant had a strong fourth-quarter performance.
Analyst Aaron Kessler raised his rating on Amazon.com to "Buy" from "Hold." He expects the company to post a strong fourth quarter and issue a positive outlook for coming quarters.
The report is due after the market closes Thursday.
He noted that Amazon.com said its peak sales day, Dec. 14, saw customers worldwide ordering more than 9.5 million items. That's up 51 percent from the prior year's peak sales day.
Kessler also said that there are signs traffic to Amazon.com's Web site was up in the fourth quarter.
He said customers flocked to Amazon.com due to its low prices, free shipping, increased selection of products and trustworthiness.
Kessler also kept his price target at $155 for Amazon.com, which is a 30 percent increase from Tuesday's close.
He said it's a good time for investors to get into the stock, having fallen 15 percent and now trades at 32 times its 2010 earnings per share, excluding one-time items. That's at the low end of where Amazon.com has traded historically, at 30 to 40 times forward pro forma earnings.