Goldman Sachs' Heath Terry predicts Amazon will slightly miss sales estimates for the June quarter, but that's not causing him to get bearish on the stock. In fact, the analyst is doing the opposite, hiking his 12-month price target to $900 from $790, which represents 21 percent upside from Wednesday's close.
"We believe the risk/reward remains favorable as investments in web services, infrastructure, and logistics should result in additional share gains, cash flow growth, and continued high returns on investment," Terry wrote in a note to clients Thursday.
The internet company is now a margin expansion story, he wrote, so a sales miss just won't matter over the long term. Terry's second-quarter Amazon revenue forecast is $29.4 billion versus the $29.5 billion Wall Street consensus. The company is scheduled to report earnings on July 28.