Goldman Sachs analyst Heath Terry raised the firm’s price target on Amazon.com to $2,900 from $2,600 and keeps a Conviction Buy rating on the shares. The analyst expects Amazon to report results “well above” consensus expectations on revenue and profitability, while guiding Q2 above consensus on both metrics. Amazon is seeing increased demand in its retail, Web Services and ads businesses and has the ability to meet the challenges of this demand, Terry tells investors in a research note. He believes this will “steepen the curve” of its long term growth rate, drive incremental profitability, and further deepen the “competitive moat” around all of its businesses. Despite the stock’s outperformance, the market continues to underestimate the long term value of the Amazon platform, contends Terry, who thinks the company represents the best risk/reward in the Internet sector.
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