** Brokerage Raymond James downgrades e-commerce giant Amazon AMZN.O to "outperform" from "strong buy" and cuts PT to $195 from $275

** Brokerage's PT of $195 is now lowest on Wall Street but implies 11.5% upside to the stock's last close

** Shares of AMZN down 4% to $165.69

** Amazon's investment cycle, including supply chains, logistics, and AI, will create a drag on earnings - Brokerage

** Expect AMZN to incur significant costs due to two logistics initiatives, building out rural delivery capabilities after the UPS UPS.N exit and diversifying its supply chain to reduce dependence on China - Raymond James

** Brokerage also sees downside to AMZN's exposure to China-linked sales and advertising revenue

** Trimming AMZN's EBIT estimates by $6 billion- $12 billion in 2025-26 due to margin pressures and lower ads/AWS estimates

** Including session moves, AMZN stock down 24.4% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))