Legg Mason Upgrades Amazon.com

Analyst Scott DeVitt says the online retailer is resolving the issues behind its four consecutive quarters of share price decline

Legg Mason upgrades online retailer Amazon.com AMZN to buy from hold.

Analyst Scott DeVitt says he thinks Amazon.com is the online marketplace for inline retail. He says he might be early with the recommendation, however, at current levels, he would advise long-term-oriented investors to acquire shares opportunistically.

He notes Amazon.com has missed "Street" expectations for four quarters consecutively, as shares have declined 13%, 12%, 15%, and 3%, respectively. He believes the trend of declines has relevance and issues behind the decline are being resolved.

DeVitt sees 67 cents 2005 earnings per share, and 87 cents 2006 earnings per share. He has a $42 target.

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