Canaccord analyst, M. Graham, is an admitted loser when it comes to predicting the moves in Amazon. The stock was through the roof, and more, last year and he missed it. Therefore, ergo, he’s trying to recapture lightning in a bottle now, since the stock is well off its highs.
“[Amazon’s] stock is down by about 25 percent, and the valuation is as reasonable as it has been in years,” said Michael Graham of Canaccord Genuity. “We believe Amazon’s stock is unlikely to truly retreat into ‘value’ territory as long as top-line momentum is strong, and we expect this to persist for the foreseeable future.”
“We regrettably missed last year’s big move in Amazon’s stock,” Graham said. “While we were confident in top-line growth prospects, we were concerned that margins would expand more slowly than consensus expected. This view was marginally vindicated by Amazon’s fourth quarter [earnings] report, wherein the company guided for a slower margin ramp. This, combined with general market weakness, has caused the stock to drop about 25 percent since the start of the year. We are therefore taking this opportunity to upgrade the stock and re-join the majority which we believe is correct in this instance.”
Amazon is a great company. But seeing this upgrade, with a price target of $750 wreaks of jinx. I believe this man to be the very bane of research reports for Amazon. Therefore, it should probably be taken with a heavy grain of salt, until he proves otherwise.
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Canaccord will be gone long before the big A ever hits 750.
Too many people trying to catch AMZN for the big leg up to riches and happiness. I am feeling they will pay dearly.
Where were calls like this when Amazon was under $500?
“valuation is as reasonable as it has been in years” Which translated means not cheap by any objective measure, particularly if you account for the unaccounted for capital leases and stock options. Love the company, hate the stock. Though admittedly it has made people a lot of money over the past decade +. So at some point I may have to hold my nose and by it for a trade.