AMAZON SALES CAN DROP 30%+THIS YEAR:RETAIL IS DEAD 30 minutes ago Broadpoint AmTech downgrades Amazon.com from $40 to $35, 12-Jan-09 11:19 am Broadpoint AmTech Cuts Amazon.com (AMZN) to Sell, Says Consumers Hit The Brakes
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Broadpoint AmTech downgrades Amazon.com (Nasdaq: AMZN) from Neutral to Sell and lowers its price target from $40 to $35, saying 1H09 likely to be a consumer ghost town.
Analyst Tim Boyd said, "Our tech team came away from last week's CES looking like it had seen a ghost. That ghost is the U.S. consumer. Nearly every one of the 40+ companies we met with were extremely bearish on the near-term demand outlook and noted that they would be cutting their workforces. This bodes very poorly for consumer confidence, which in turn bodes very poorly for AMZN's 1H09 outlook. While we realize that investors are aware that "it's bad out there," we are not sure they realize quite how bad. The consumer has put on the brakes hard in January, exemplified last week when WalMart guided down its Q4 (January quarter) due to sluggish January sales."
The firm lower 2009 estimates. The firm lowered 2009 revenue, EBITDA, EPS and FCF per share estimates from $20.9B, $1.58B, $1.53 and $2.32 to $20.3B, $1.33B, $1.08 and $2.17, respectively.