Home / FINANCE / COWEN: We counted during slightest 7 sell companies that can’t get eaten adult by Amazon (AMZN, COST, WFM, ROST, WMT, TJX, TIF, LVMH, BID)

COWEN: We counted during slightest 7 sell companies that can’t get eaten adult by Amazon (AMZN, COST, WFM, ROST, WMT, TJX, TIF, LVMH, BID)


rotisserie roasted chicken
Costco’s $4.99 rotisserie duck is mystic of its
cost care in a industry, Cowen said.

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Amazon widespread a strech serve into a sell attention on
Friday when it announced a jaw-dropping
merger of Whole Foods for $13.7 billion.

The market’s present greeting —
Amazon’s shares rallied while those of a competitors
tumbled — sent a transparent message: Investors are bullish on Amazon’s
success in a ethereal business of fresh-food delivery, and
they’re disturbed about a outcome on determined grocers like
Target and Walmart.

But during slightest 7 sell companies’ bonds are “un-Amazon-able,”
according to a note on Monday from Oliver Chen, a comparison equity
investigate researcher during Cowen:

“Taking a step behind in a zone during large, we continue to
trust investors will have some-more invulnerability vs. AMZN’s mastery if
they follow a Super Stock speculation — we consider low value
companies or oppulance products companies are some-more Un-Amazon-Able and
reduction exposed to share waste vs. Amazon.

“In a view, Un-Amazon-Able qualities embody during Super-Value
retailers Costco, Walmart, Ross Stores, TJX or
impassioned brand, store and straight formation concentration at
Super-Premium oppulance bonds (Tiffany, LVMH,
Sotheby’s
).”

Americans gravitated toward bonus retailers like Ross Stores
during a recession, and those companies still advantage from an
hatred to full-price items. Meanwhile, Amazon’s issues with
tawdry products make oppulance a tough marketplace to crack,
Digiday reported.

Chen and his group focused especially on Amazon’s outcome on Costco in
their note. They reiterated their outperform rating on the
indiscriminate tradesman since of a low straight formation — its
clever attribute with farmers down a prolongation sequence that
would be tough to replicate in a cost-effective way.

“$4.99 rotisserie duck and a $1.50 prohibited dog dishes are symbolic
though demonstrative of a low-price and high-quality plan which
generates unchanging tellurian expansion and cost care in the
industry,” Chen said.

“Price care is a rival advantage and critical approach to
pull new and existent customers, and maybe COST does not really
even need a digital bells and whistles if it can only offer the
cheapest and best goods, services, and gas in a marketplace,”
he added.

These low prices are also probable since Costco owns some of
a prolongation facilities, Cowen said, such as a meat-processing
plant, a hot-dog factory, and an visual harsh bureau for
eyeglasses.

Chen pronounced it was doubtful another vast sell association would steal
divided Whole Foods from Amazon with a aloft bid. He wrote that
Costco would many expected hang to a plan instead of putting
down a aloft offer and that Target was not vast adequate to
simply bid.

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