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Sector Snap: Online retail stocks mixed



18 June 2008 @ 12:29 pm EST

NEW YORK (AP) - Online retail stocks were mixed Wednesday, with VistaPrint Ltd. shares rising after a Goldman Sachs analyst added the stock to her "Conviction Buy" list, citing factors including new customer growth.

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Shares of the Bermuda-based printing services company rose 91 cents, or 3.2 percent, to $29.30.

In a client note, Goldman analyst Jennifer Watson, who holds a $42 price target for the stock, also raised her fiscal 2009 and fiscal 2010 estimates for VistaPrint.

Watson expects the company's revenue to grow at least 35 percent in 2009 on stronger order growth, which stems from 30 percent or more growth in active customers and a rise in orders per customer.

Meanwhile, shares of online retailer Amazon.com Inc. declined 66 cents to $82.31.

Citi Investment Research analyst Mark Mahaney wrote in a client note that he recently met with Chief Financial Officer Tom Szkutak and other members of Amazon investor relations.

Mahaney does not see Amazon as recession-proof, but thinks its "consistently maniacal focus on price, selection and convenience has allowed it to maintain growth rates two times to three times that of the overall e-commerce growth rates in the U.S."

The analyst rates the stock "Buy" with a $97 price target.

Elsewhere in the sector, shares of online auctioneer eBay Inc. rose 27 cents to $29.08.

Stifel Nicolaus & Co. analyst Scott Devitt said in a client note that he upgraded the stock to "Buy" on Monday on evidence that eBay buying experiences were improving.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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