Citi Research reiterated its buy rating for Amazon shares, predicting strong growth for its international businesses.
Walmart announced plans last week to acquire an initial stake of about 77 percent in Flipkart, India's top e-commerce company, for $16 billion.
"We believe the India e-commerce market will grow at a 21% CAGR over the next 10 years to $202bn, that Amazon could capture 35% of this market. ... That suggests that Amazon India could be currently worth $16bn," analyst Mark May said in a note to clients Thursday. "In short, not only do we believe that investors continue to under-estimate the value of Amazon's existing Emerging International Retail Markets businesses, but also the pace and value of its recent international expansion efforts."