Shares of Amazon.com Inc. rose 0.7% in premarket trading Monday after analysts at J.P. Morgan raised their price target on the stock to $1,375 from $1,220. “We believe Amazon is set to outperform in 2018 with numerous major growth opportunities driving revenue, with better margin flow-through after compression in 2017,” wrote the analysts, led by Doug Anmuth. The hiked price target is based on a 0.9x retail gross merchandise volume multiple, which is above the firm’s multiple for Wal-Mart Stores Inc. and Costco Wholesale Corp. due to Amazon’s faster growth. The analysts added that the 0.9x multiple “still implies a discount” relative to Home Depot Inc. , Lowe’s Cos. , and TJX Cos. . Amazon shares have gained 57% so far in 2017, while the S&P 500 [s” spx] is up 20%.
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