By Sam Boughedda
Rosenblatt Securities analyst Barton Crockett adjusted the firm's price target for Amazon (NASDAQ:AMZN) on Tuesday, following its share split, setting a target of $107 per share, a new Street low.
Crockett, who maintained a Neutral rating on the stock, reduced the firm's split-adjusted price target by 26%, near recent trading levels.
"We continue to see consensus long-term sales estimates as too high, mainly from what we see as excessive long-term optimism for online retail," said the analyst. "Amazon's multi-year extraordinary out-performance in retail has substantially diminished. We expect that to persist."
"Other elements of Amazon remain secularly hearty, including AWS. Progression towards retail maturity and heightened macro risks move us to a lower long-term multiple assumptions, reducing our PT," he added.
Rosenblatt sees retail growth at Amazon skewed by the shift of Prime Day to 3Q this year from 2Q last year. But they do, however, see normalized domestic online retail growth for the next few quarters at Amazon continuing to not meaningfully outperform broader U.S. retail.
Rosenblatt's long-term sales estimates for Amazon are below the FactSet consensus.
"Our 2Q22E Amazon total sales projection is consistent with guidance and FactSet consensus. But our 3Q22E, 4Q22E, 2023E and 2024E are 3% to 6% lower."