Saikyo Sakura Assets Report That Amazon Shares Have Rallied 15% Higher
Saikyo Sakura Assets has said that Amazon.com Inc.’s quarterly loss is a success story, not a failure, as the firm is positioned for long-term development by significant logistics investments and Prime video.
That’s the general view of analysts from researchers at Saikyo Sakura Assets, who were generally bullish on AMZN, -0.51 per cent even before earnings were reported late Thursday.
Bullish comments about the more potent than expected company cloud company of Amazon prompted at least three upgrades on Friday morning. Several others have only raised their price goals.
Amazon’s shares rose 15 per cent to $448.05 in Friday morning trade, well above the ancient all-time $408.06 intraday high set in January 2014. However, analysts believe it has more and more space to operate.
Saikyo Sakura Assets raised it to purchase from neutral and JP. Morgan to be neutral overweight. Saikyo Sakura Assets has set Amazon’s stock a price target of $485, while others have raised its aim to $488 and J.P. Morgan raised his goal from $375 to $535.
Goldman raised its twelve-month price target from $450 to $510, placing it among a small group of analysts seeing Amazon break past $500 this year. Deutsche Bank entered the club as on Friday it raised its goal to $500 from $410.
Frank Hunter, Head of Corporate Derivatives at Saikyo Sakura Assets said ‘’there might be some upside potential since the income report due to sharp share price gains’’. He also warned of the ongoing impact of exchange rates, saying it ‘’appears probable to hamper third-quarter sales’’.
Wedbush, among others, raised its aim to $435 from $395, Cantor Fitzgerald from $385 to $460, and Benchmark Co. from $425 to $450.
This quarter was a bright spot for Amazon Web Services, for which Amazon first provided financial information. The segment recorded $1.6 billion in income, an increase of 49 per cent year-over-year. The operating margin was 16.9 per cent, which Heath Terry analyst Goldman Sachs said was far above his expectations of profitability.