UPDATE: Nomura Initiates Coverage On Amazon

In a note out Friday, Nomura analyst Robert Drbul starts Amazon.com, Inc. (NASDAQ: AMZN) at Buy with a $410 price target.

"With the stock within 16% of its 2014 and 12-month low, having declined by 18% year to date, underperforming the S&P 500/Internet Retail Index and the QNET Index, sentiment appears quite negative owing to concerns surrounding ongoing heavy investment and losses in hardware and international markets. We believe this pullback represents a buying opportunity for long-term investors."

"Four important views support his positive outlook:

1. We disagree with the general perception that management is indifferent toward stock price performance
2. AWS holds significant upside potential
3. Increased Prime penetration should drive value and earnings leverage
4. Any signs of abating investment spending should significantly alleviate profitability concerns and be a significant positive catalyst for the shares."