Best Research Ideas

Amazon (AMZN) – Deep Dive: Still Room to Run

Jefferies sees a roadmap to $3,000 for AMZN shares by 2022E supported by sum-of-the-parts (SOTP) work. The firm’s SOTP analysis identifies conservative estimates around both growth, including a deceleration in retail, and valuation multiples for the business segments. The Amazon Web Services, advertising and Third Party Seller segments are all expected to grow faster than the retail business, are accretive to margins and are higher multiple businesses. Additionally, new businesses including Healthcare, where Jefferies expects the company eventually to engage in Rx prescriptions, would be incremental to the current forecasted growth model. FULL REPORT

Brent Thill, Internet