Amazon Receives Buy Rating from Deutsche Bank Analyst Lee Horowitz
Amazon (AMZN) has recently been given a new Buy rating by Deutsche Bank analyst, Lee Horowitz. Horowitz’s rating is based on his evaluation of competitive threats and Amazon’s ability to adapt and maintain dominance in the e-commerce sector.
While acknowledging the rise of Temu as a significant e-commerce competitor in the United States, Horowitz does not see it as a structural threat to Amazon. He believes that Amazon’s existing supply can effectively compete with Temu and that the perceived price differential between the two is exaggerated. According to Horowitz, customers can find competitively priced goods on Amazon.
Horowitz also argues that Temu’s business model is not sustainable in its current form, with high average order values and losses per order. Additionally, he highlights potential regulatory risks that Temu might face, which could increase its operational costs and limit its supply. These factors make Amazon a safer bet in the e-commerce sector, leading to Horowitz’s Buy recommendation.
In another report released yesterday, Stifel Nicolaus also initiated coverage with a Buy rating on Amazon stock, setting a $173.00 price target.
Amazon.com, Inc. provides online retail shopping services and generates revenue from cloud computing services. It operates through three business segments: North America, International, and Amazon Web Services (AWS). The company is headquartered in Seattle, WA.
(Source: Business Insider)