Credit Suisse Maintains Outperform on Amazon.com (AMZN)

Credit Suisse maintained an Outperform rating on Amazon.com (NASDAQ: AMZN) and lowered its price target to $395.00 (from $422.00). The change follows Q3 results. Analyst Stephen Ju said he was holding his nerve "amidst the negative sentiment storm."

"Ongoing investments into its many initiatives including AWS and geo expansion masked the gross margin expansion benefits in its retail business which was 239bp (less $170mm in Fire Phone write downs vs 226bp in 2Q14 and 175bp in 1Q14). AMZN continues to reap the benefits from fulfillment center maturation and shipping fee savings given closer proximity to its user base," said Ju.

"As we do not believe management’s discipline around investments has changed over the years, we remain buyers of AMZN shares and maintain our Outperform rating especially as it remains out of favor as the aforementioned margin expansion in its core retail franchise is strong evidence of its ability to deliver long-term shareholder value creation," he added.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $313.18 yesterday.

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