Lehman Brothers maintains its market perform rating on Amazon.com (AMZN ).
Analyst Holly Becker says after a remarkable fourth quarter, Amazon appears to be running on all cylinders. But the critical question is whether it has made a sustained turnaround in the first quarter. She's still concerned about certain aspects of the company's model. There's little visibility into its Services unit, and this questions its sustainability; top-line growth is driven by more risky, less valuable units (international services); its marketing strategy is shifting to a price/discount focus.
Furthermore, she continues to be held back by the valuation as the stock is rich on every level. Each of her valuation analysis results in $10-$13 value per share.