* Barclays cuts price target to $220 from $230
* Susquehanna cuts price target to $255 from $275
* RBC raises price target to $250 from $245
Oct 26 Amazon.com Inc's spending spree
will hurt margins in the near term but boost profit in the long
run, analysts said, after the world's No.1 internet retailer
posted a loss on heavy spending on technology, infrastructure
and digital content.
Amazon shares were set to open about 2 percent higher on
Friday even though the company forecast weak sales ahead of the
crucial holiday shopping quarter.
Analysts remained largely optimistic about Amazon's ability
to post strong growth in its e-commerce and international
business despite the economic slowdown in Europe that also
contributed to the company's third-quarter loss.
"The low 4Q12 revenue growth guidance presents an upside
opportunity particularly given the continued solid customer and
unit increases and the strong third-party business," said
Needham & Co analyst Kerry Rice, who has a "hold" rating on the
Amazon's current quarter could also benefit from strong
e-commerce trends as more consumers shift online to make their
holiday purchases, he added.
Barclays Capital Inc analyst Anthony DiClemente cut his
target on the stock to $220 from $230, but said Amazon has
regularly shown a tendency to set low expectations.
Susquehanna International, while cutting its price target on
the stock to $255 from $275, said it was positive on Amazon's
growing presence in third-party retail, its digital business
leading the transformation of books, music and videos, and its
unrivaled network of distribution centers and web service.
RBC Capital Markets raised its price target to $250 from
$245, and said it remained bullish on Amazon's opportunities in
worldwide retail as it expands in geographies and categories.
International sales rose 20 percent to $5.92 billion in the
quarter from a year earlier.