NEW YORK (TheStreet) -- Shares of Amazon.com Inc. (AMZN) closed up 2.98% to $315.33 on Tuesday after the company's EBITDA and adjusted EPS estimates were increased at Oppenheimer.
Oppenheimer also raised EBITDA estimates to $6.37 billion from $6.41 billion for fiscal 2014, and to $9.40 billion from $9.38 billion for fiscal 2015.
The firm raised adjusted EPS estimates to $3.01 from $2.91 for fiscal 2014, and to $6.73 from $6.71 for fiscal 2015.
Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Additionally, the firm reiterated its rating of "outperform" for the online marketplace company, and set a price target of $415. "We estimate [Amazon Web Services] to contribute at least $70M in incremental 3Q EBITDA," Oppenheimer analyst Tim Horan said. Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Although AMZN's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. 36.46% is the gross profit margin for AMAZON.COM INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.65% trails the industry average. Net operating cash flow has declined marginally to $862.00 million or 2.04% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AMAZON.COM INC has marginally lower results. In its most recent trading session, AMZN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry. You can view the full analysis from the report here: AMZN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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