Citi, a Wall Street investment bank, predicts that 2018 will be another bumper harvest for Amazon shareholders.
Citigroup reiterated its "buy" rating on the Internet giant's stock and predicted that Amazon will achieve strong growth in performance.
Citigroup analyst Mark May said in its latest investor report on Friday: "We are still bullish on the consumer internet industry, especially given the favorable tax reforms recently and the fact that the business environment is ultimately responsible for the companies we are focused on The market is good. Amazon's position further, as our preferred investment objective. We expect that Amazon's revenue growth rate will exceed 30%, profit margins will continue to rise, the dynamic price-earnings ratio of 20 times. & rdquo;
May also raised his target price for the unit from $ 1,250 to $ 1,400, 16% above the stock's closing price on Thursday.
May estimated that Amazon will be able to increase its operating margin from the current 6% to nearly 10% in the next three years, mainly due to the growth of AWS services and advertising businesses.
Mayi writes: "We expect Amazon to expand its operations in new areas such as healthcare / pharmacy in 2018 and will integrate the all-food supermarket into core Prime services." & rdquo;
Amazon shares rose 56% in 2017, while the S & P 500 index rose 19% over the same period.
Amazon shares rose 0.5% in pre-Friday trading and then opened slightly higher at $ 1,217.51, up 0.65%.