Amazon: Susquehanna remains positive after Whole Foods deal.
(CercleFinance.com) - Susquehanna remains "positive" on Amazon, maintaining its 1,250 dollar target price on the stock, pointing out that only about 30% of Whole Foods customers are Amazon Prime members.
The brokerage firm believes this points to potential meaningful synergies, if Amazon is able to successfully sell Prime memberships into its soon-to-be Whole Foods customer base.
Out of the 78 Whole Foods customers who weren't Prime customers in the broker's survey, only 6% said they were more likely to become Prime members after the acquisition.
"While converting Whole Foods customers into Prime members isn't necessarily a must for the acquisition to be successful, we do believe it would represent a significant opportunity," Susquehanna explains.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The brokerage firm believes this points to potential meaningful synergies, if Amazon is able to successfully sell Prime memberships into its soon-to-be Whole Foods customer base.
Out of the 78 Whole Foods customers who weren't Prime customers in the broker's survey, only 6% said they were more likely to become Prime members after the acquisition.
"While converting Whole Foods customers into Prime members isn't necessarily a must for the acquisition to be successful, we do believe it would represent a significant opportunity," Susquehanna explains.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.