MKM Partners analyst Rohit Kulkarni lowered the firm’s price target on Amazon.com to $125 from $145 to reflect the recent cloud and e-commerce trends along with his updated assumptions on operating margins and free cash flows. The analyst states that the company’s North America retail margins will reach break-even during 2023, but its international retail margins will stay low-single-digit negative in 2023, adding that while estimates have declined steadily, there is downside risk for Amazon margins. Kulkarni still keeps a Buy rating on the shares however, noting that at current levels, Amazon.com is his top Internet Mega Cap long idea with a "highly asymmetric" risk/reward profile.
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