To reflect the reduced storage prices announced last week by Amazon Web Services, Citi analyst Mark May cut his AWS revenue and consolidated segment operating income for 2017 by 3% and 9%, respectively.

The analyst, however, does not view the price reductions as an indication of competitive pressures or a threat to long-term margin outlook for AWS. May lowered his price target for Amazon.com (AMZN) shares to $960 from $965 and keeps a Buy rating on name. His new price target reflects 23% upside from current levels.