KeyBanc Keeps a Hold Rating on Amazon

By Austin Angelo

KeyBanc analyst Edward Yruma reiterated a Hold rating on Amazon (NASDAQ: AMZN) today. The company’s shares closed on Friday at $945.26.

Yruma commented:

“We believe the banner has lost market share to other competitors in natural/Organics (Costco, KR, Trader Joe’s, among others). The 22% initial price adjustments in key items are material and help bridge the gap (see Exhibit 1 herein). We also expect AMZN to continue to roll out additional 365 banner locations in an effort to make WFM’s price points more accessible. Look for other synergies to be adopted quickly. WFM is running a special on Echo ($99.99) and Echo Dot ($44.99). We expect the rollout of lockers to stores in short order. The Company will also adopt Prime as the loyalty program for WFM. Over time, this will enable AMZN to better understand online and in-store purchase behavior. Amazon’s aggressive moves to use price is a bit of a strategy pivot. While price is a component of AMZN’s Prime offering, we think it has increasingly leaned on convenience and delivery speed as some of the primary value propositions. The move to aggressively use price is similar to the strategy used within the book category. In comparison, in areas like apparel, AMZN has actually moved to MAP pricing as it has attracted key vendors.”

According to TipRanks.com, Yruma is a 4-star analyst with an average return of 3.5% and a 54.8% success rate. Yruma covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, American Apparel Inc, and Ascena Retail Group.

Currently, the analyst consensus on Amazon is Strong Buy and the average price target is $1178.50, representing a 24.7% upside.

In a report issued on August 25, Raymond James also reiterated a Hold rating on the stock.

Based on Amazon’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $37.96 billion and quarterly net profit of $197 million. In comparison, last year the company earned revenue of $30.4 billion and had a net profit of $857 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.