NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) - Get Report were climbing in mid-morning trading on Monday as R.W. Baird analysts said they're bullish on the stock despite last week's lower-than-expected 2016 third-quarter earnings.
The firm reiterated its "outperform" rating and $850 price target on shares of the Seattle-based e-commerce company, Barron's reports.
Baird said Amazon.com's third-quarter top-line growth was solid and believes analysts' estimates will be more reasonable moving forward.
Amazon.com management outlined plans to invest heavily in areas such as fulfillment and Amazon Web Services infrastructure through the end of 2016, the firm noted.
"Importantly, we view these investments as setting the stage for further meaningful revenue growth in retail, technology and media," Baird said in an analyst note, according to Barron's. "Moreover, Amazon.com continues to ramp in emerging areas of technology, including machine learning and home automation."
Baird added that it wasn't surprised to see Amazon.com's weak margin expansion in the third quarter.
(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial).
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Amazon.com as a Buy with a ratings score of B-. COM INC (AMZN) a BUY. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, the team feels they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: AMZN