Amazon.com (AMZN) PT Raised to $2,225 at Aegis Capital

Aegis Capital analyst Victor Anthony raised the price target on Amazon.com (NASDAQ: AMZN) to $2,225.00 (from $2,063.00) while maintaining a Buy rating.

The analyst comments "We see a few reasons why investors should worry less and why retail fundamentals remain healthy: 1) comps were tough, with higher 1P contribution in the year-ago quarter; 2) the accounting shifts of digital media content from 1P to 3P and shift of Diwali sales into 4Q this year. 3) we understand that spend per Prime member continues to grow at a healthy pace; 4) acquisition of Prime memberships continues to grow. Refuting concerns of maturation, Amazon sees ample room to grow Prime members in the U.S. - they see strong growth in monthly Prime memberships. The runway is even more significant outside the U.S.; 5) Amazon is making significant headway in emerging markets such as India, where the online retail opportunity is fertile; and 6) after two years of significant capacity builds and hiring growth (+13% headcount growth vs 38% in '17 ex-Whole Foods, and 48% in '16) the slowdown in expense growth reflects efficiency of prior investments rather a slowdown in demand."

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