Analyst Sees Amazon's (AMZN) Kindle Generating $2B in Sales by '12;

Reiterates Buy Ahead of DX Launch

From streetinsider.com, June 4, 2009

This morning, analysts at Collins Stewart issued a short research note reiterating their Buy rating and $95 price target on Amazon.com (Nasdaq: AMZN). Traders are shrugging off the report, however; the stock most recently traded at $84.79, down 1% from yesterday's close.

The firm had some interesting comments on Amazon's Kindle, saying the digital-reader "represents a multi-billion dollar opportunity for AMZN." The analysts pointed at sharp increases in the content available to the overall Kindle environment: eBook titles rose from 90,000 at the launch in Nov. '07 to 285,000 in May to 297,000 in June. Collins Stewart sees the Kindle generating about $310 million in revenue and $70 million in profit for Amazon this year, and by 2012, the firm sees Kindle generating $2 billion in sales on gross profit of $560 million.

Collins Stewart also notes Amazon's release of the Kindle DX on June 10, which will allow the online retailer to sell text books at its Kindle Store by August. The analysts also said they expect the Kindle to launch internationally during the second half of this year.