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Get Four
| ![]() | ![]() JULY 27, 2005
![]() WORD ON THE STREET Piper Jaffray Upgrades Amazon.comAnalyst Safa Rashtchy believes the improvement in the company's margin structure warrants a higher multipleAmazon.com (AMZN ) reported 12 cents second-quarter earnings per share, and sees $8.275 billion to $8.675 billion 2005 sales. Piper Jaffray upgraded the stock. Analyst Safa Rashtchy upgrades Amazon to market perform from underperform. He says the online retailer's reported $1.75 billion second-quarter revenues beat his $1.72 billion estimate, and the reported 12 cents GAAP EPS beat his 5 cents estimate. He raised 2005 estimates to 70 cents EPS on $8.6 billion in revenues from 42 cents EPS on $8.4 billion in revenues, 2006 estimates to 95 cents EPS on $10.2 billion in revenues from 59 cents EPS on $9.8 billion in revenues. Rashtchy says his new estimates reflect gross margin improvements driven by high margin credit card activation revenues and third party sales. He believes the improvement in the company's margin structure warrants a higher multiple. As such, he upgrades and raises $30 price target to $44. ![]() All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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