NEW YORK (TheStreet) -- Shares of Amazon.com Inc (AMZN) were declining by 0.48% to $438.71 in mid-morning trading Thursday, after the online retailer had its rating cut to "hold" from "buy" by analysts at Evercore ISI this morning.
The firm reduced its rating, but maintained its $460 price target on shares of the online retail giant.
Evercore noted that Amazon's shares are up 45% so far this year, and approaching the firm's price target.
Analysts also said the company's rising capital leasing activity has made modeling free-cash-flow upside more difficult.
Seattle, Wash.-based Amazon.com is an e-commerce company that sells a range of products and services through its various owned and affiliated websites.
Insight from TheStreet's Research Team:
Amazon is a part of Bryan Ashenberg's GrowthSeeker.com Portfolio. Here is what Ashenberg had to say about the stock in a recent weekly summary:
Amazon's shares traded 3% higher this week. On Wednesday, Piper Jaffray reiterated its Overweight rating and $520 price target on the stock. The analyst believes the June quarter unit growth should come in between 19% and 22% based on their proprietary analysis of Google search terms, which would be ahead of the 18% to 19% consensus expectations.
While we are not looking for Amazon to maximize near-term profitability, we believe a focus on profitability needs to continue to be in the forefront of management's efforts. Amazon's first-quarter results and the newfound information on the marked profitability of the Amazon Web Services (AWS) segment lead us to conclude that the stock remains undervalued.