Citi gives 5 reasons why you should buy Amazon (AMZN) now. They focus around the sustainability of Amazon’s revenue growth and the still material opportunity for margin expansion at the company:
1) AMZN has one of the strongest growth profiles in the Net sector
2) AMZN is an ecommerce share gainer
3) AMZN has material International exposure
4) AMZN has a very good product innovation track record (latest e.g. = Kindle)
5) AMZN’s FCF valuation appears reasonably attractive.
Citi reiterates BUY, target price $97.
If you can get over the fact that two of Amazon’s biggest sellers (book and cd’s) are dying industries, you might agree.
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Disclosure: Clusterstock editor Henry Blodget has a long-term position in AMZN.
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