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Morgan Stanley Lowers EBIT Estimates to Reflect ‘Significant Near-Term Impact’ From Rising Fuel Costs -Breaking

by Mike Robinson

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© Reuters. Amazon (AMZN). Morgan Stanley lowers its EBIT estimates to reflect’significant near-term impact’ from rising fuel costs

Morgan Stanley Analyst Brian Nowak maintained an Overweight Rating on Amazon (NASDAQ) with a target price of $4,200. However, he reduced EBITDA estimates to 2022/2023.

Nowak has reduced the 22/23 EBIT ratio by 15%/2%, as he is now assuming higher diesel costs in 23. But, the analyst believes AMZN has many potential to help offset fuel prices and increase Street estimates.

Fuel accounts for approximately 20% of AMZN’s annual shipping costs or $.78 per fulfilled unit. “Note that AMZN’s fuel costs can vary due to carrier pass-through adjustments, which are often delayed for a few weeks to the higher diesel price at the pump. AMZLs expanding in-house logistics offering will increase AMZNs N. American fulfilled unit movement in 2022,” Nowak stated in a memo sent to clients.

The Top Pick is Net-net stock AMZN. Morgan Stanley Expectations of margin growth and revenue acceleration (NYSE:

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