BofA lowered the firm’s price target on Amazon.com (AMZN) to $286 from $303 and keeps a Buy rating on the shares ahead of the company’s Q4 report due on February 5. Based on investor conversations, the firm think expectations for revenue and EBIT are around $212.5B and $26.0B, respectively, above the Street at $211B and $24.6B, the analyst tells investors in a preview. The firm expects 22% year-over-year AWS growth, above the Street at 21% and an acceleration from 20% growth in Q3, but notes that Microsoft (MSFT) and Google (GOOGL) will report ahead of Amazon and will likely further shape AWS expectations. The firm cites SaaS sector multiple compression for its lowered target.
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