E-commerce giant Amazon.com, Inc (NASDAQ: AMZN) is slated to announce second quarter 2015 earnings results on Thursday, July 23, after market close. Several factors are expected to be included in Amazon's earnings report, including Prime Day sales and an update on Amazon Web Services (AWS). As such, Wall Street analysts have been weighing in on Amazon ahead of the company's earnings with their latest predictions and forecasts. Here are the top 10 analysts who cover Amazon to listen to ahead of earnings:
1. Gene Munster of Piper Jaffray last rated Amazon on July 21, stating that “despite the [stock's] recent move higher, [he] would be [an] owner of AMZN.” The analyst reiterates an Overweight rating on the company with a price target of $520. In regards to Amazon's upcoming earnings, Munster believes the company “will exceed margin expectations for Jun-15 at a similar rate as the upside seen in the Mar-15 quarter (+100bps over high end of guidance) and will guide for the high end of Sep-15 margins above the Street… (which will also get a 2% boost from Prime Day).” Munster also weighed in on AWS, citing the cloud-computing platform as “larger than expected [and] more profitable than expected.” Additionally, the analyst believes “AWS will expand its portfolio with SaaS-like offerings and will continue to dominate its market” and will “see continued revenue growth.”
Gene Munster has rated Amazon a total of 34 times since 2009, earning a 91% success rate recommending the stock and a +28.7% average return per recommendation when measured over a one-year horizon and no benchmark.
2. Mark Mahaney of RBC Capital Markets last rated Amazon on July 21 in light of the company's upcoming earnings, reiterating an Outperform rating on the stock with a $500 price target. The analyst believes “2015 results and fundamental trends will continue providing an upward bias to AMZN shares.” He also sees new revenue growth opportunities in “consumer staples, apparel, international expansion, Amazon Web Services, digital media offerings, office/industrial supplies, and advertising.” Mahaney specifically thinks AWS will help boost the company's margins and together with Amazon Prime are “likely catalysts for gross margin expansion.”
