Goldman Keeps Outperform Rating on Amazon

Analyst Anthony Noto thinks an alliance with Wal-Mart would stack up favorably

Goldman Sachs reiterated its market outperform rating on (AMZN ).

The London Sunday Times reported that and Walmart (WMT ) are in alliance talks. Goldman Sachs would view the partnership favorably.

Analyst Anthony Noto says a strategic retail alliances can provide direct buying opportunities, reduce inventory exposure, lower customer acquisition costs, increase frequency of purchases and give access to new customers. Noto says given the current decelerating outlook for e-commerce growth, the impact of these partnerships is increasingly important. He says partnerships could fill key voids or limitations in Amazon's business by broadening its appeal and improving its economics model.

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