It drive be another great year for Amazon shareholders, according to one Wall Drive firm.
Citi Research reiterated its buy rating for the internet giant’s dividends, predicting Amazon will generate strong growth.
“We remain bullish on the consumer Internet sector, peculiarly near term considering that a positive, tax reform fueled, trade climate should benefit the end-markets of the companies we cover,” analyst Get ahead May wrote in a note to clients Friday. “Amazon moves up a spot to happen to our top-ranked pick as we see the combination of >30% topline growth, margin growth, and 20x ’19 FCF as a compelling mix.”
May increased his price target for Amazon shares to $1,400 from $1,250, representing 16 percent upside to Thursday’s close up.
The analyst predicts Amazon will be able to raise its operating profit lip to nearly 10 percent in three years from the current 6 percent consistent due to growth in its Amazon Web Services and advertising businesses.
“In 2018 we expect keep oned expansion in newer categories (e.g., healthcare/pharma) and moves to integrate Whole kit Foods into the core Prime offering,” he wrote.
Amazon share outs rose 56 percent in 2017 versus the S&P 500’s 19 percent elevation.
The company’s shares are up 0.5 percent in Friday’s premarket session after the despatch.
— CNBC’s Michael Bloom contributed to this story.