J.P. Morgan Reiterates Amazon.com (AMZN) Overweight Rating

J.P. Morgan analysts Imran Khan, Lev Polinsky, Bridget Weishaar, Shelby Taffer and Vasily Karasyov reiterated their Overweight rating for shares of Amazon.com, Inc. (Nasdaq: AMZN), with a price target of $180.

The J.P. Morgan analysts said that Amazon.com remains one of their top investment picks.

The analysts estimated that eBooks could become 25% of the U.S. book market, with Amazon.com seeing sales of $1 billion a year.

Although Apple Inc. (Nasdaq: AAPL) had a four year head start in digital music sales, Amazon.com has taken 10% of the digital music market and has staked out a strong position in the eBook market.

The J.P. Morgan analysts wrote, "Amazon is one of the two large fish (with eBay) in what is currently a small pond. However, we think the scale of the incremental growth opportunity is not fully recognized. Amazon represented 0.33% of US retail in 2009; by comparison Walmart’s US division (not including Sam’s club) represented a full 7% of US retail."