UPDATE: Morgan Stanley Initiates Coverage On Amazon On Focus On Core eCommerce Business

In a report published Wednesday, Morgan Stanley analyst Katy L. Huberty initiated coverage on Amazon.com, Inc. (NASDAQ: AMZN) with an Overweight rating and $420.00 price target.

In the report, Morgan Stanley noted, “We view the earnings reset, low institutional ownership, and tempering of investments as providing a favorable set-up. Less spending on unprofitable projects will highlight improving eCommerce margins next year. We initiate at OW with a $420 PT; AMZN is being added to MS's Best Ideas.”

Amazon.com, Inc. closed on Tuesday at $295.59.