Amazon's Results Weren't 'meaningful' Enough For Raymond James To Return To Bullish Stance

By Tomi Kilgore Markets MarketWatch Pulse

Analyst Aaron Kessler at Raymond James, who downgraded Amazon.com Inc. ahead of the e-commerce giant's first-quarter report, said Friday that he is sticking to his view that the stock is fairly valued. After having a bullish rating on Amazon for two years, Kessler cut his rating to market perform on Tuesday. After Amazon reported late Thursday what Kessler called "largely in-line 1Q results," the stock surged 3.1% in premarket trade toward its 11th record close of the year. Kessler said he has a "positive fundamental view" on Amazon, but he believes Amazon "needs to begin to show more meaningful operating leverage--flat [year-over-year] in 1Q--for shares to move meaningfully higher." The stock has rallied 9.9% over the past three months, while the S&P 500 has gained 4.1%.

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