Amazon.com Inc.'s stock was downgraded to neutral from buy at SunTrust Robinson Humphrey on Monday, with analyst Bob Peck saying the company's free cash flow multiple is "misunderstood" and the stock is "more expensive" than some investors realize. While Peck said he is still very positive on the company's long-term opportunity, including the break out of its Amazon Web Services category, he is concerned about how quickly the stock has moved past his $370 2015 price target, rising 25% since its fourth-quarter earnings last month. "Critically, we think that the stock currently trades at 70x fwd Adjusted FCF, when adjusting for capital leases vs 40% growth," Peck said in a note to clients. "Hence, we think the near term upside has been captured." Shares of Amazon slid 0.6% to $377.86 in premarket trade.
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