CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target of $233, up $12, is calculated using an EV/EBITDA multiple of 17x from our 2024 adj-EBITDA estimate of $150.0 billion (up from $141.8 billion) vs. 12x-30x historical average. We lift our 2024 adj-EPS (excludes Rivian valuation and stock-based comp) to $7.47 from $6.85 and 2025’s to $8.75 from $8.53. Q1 revenue of $143.3 billion (+12.5% Y/Y) beat by $764 million, with operating income of $15.3 billion (+221% Y/Y), $4.3 billion or 39% above consensus. AWS grew a staggering 17% Y/Y and is now a $100 billion run-rate business, of which AI represents just a few billion dollars today. Advertising grew a solid 24% Y/Y. We wouldn’t look too much into the cautious Q2 guidance, as AMZN is notorious for conservative guidance. We’re also not worried about the expected step up in capex this year (we estimate capex up 22% to $64 billion), as AMZN should still be able to grow operating margins while also reinvesting in its business. We see $79 billion in FCF in 2024 vs. $62 billion consensus.