Susquehanna Financial analyst Marianne Wolk Wednesday morning raised her rating on Amazon.com (NASDAQ:AMZN) to Positive from Neutral, setting a $100 price target on the stock. Yesterday, AMZN closed at $75.63.
Wolk contends that the company is likely to beat its financial guidance for Q2, given solid execution, ongoing share gains and a weaker dollar. She notes that the company had forecast Q2 revenue of $4.3 billion to $4.75 billion, or 6%-17% growth year over year, though even the high end would be down sequentially from Q1.
Wolk says the company blamed the conservative forecast on currency factors and a tough comp. But she thinks the outlook is too conservative: she notes that currency should actually be a positive factor on a sequential basis. And she says that Amazon is gaining share in the e-commerce sector - and that online retailing in general is taking business away from offline retailers.
Wol also thinks the company will continue to gain traction in new categories; she is particularly bullish about the company’s digital strategy, “which could lead to solid gains in media revenue even as the company focuses on newer categories.
AMZN Wednesday is up $1.39, or 1.8%, to $77.02.