TSX up after index logs fresh record high close
Investing.com - Morgan Stanley has reiterated an Overweight rating and $300.00 price target on Amazon.com (NASDAQ:AMZN), currently trading at $230.36, highlighting the company’s expansion into the fresh grocery market. According to InvestingPro data, 22 analysts have recently revised their earnings estimates upward, with price targets ranging from $225 to $306.
The investment firm sees Amazon’s push into the approximately $600 billion fresh grocery sector as a catalyst for sustained faster growth, building on its impressive 10.9% revenue growth over the last twelve months to $670 billion. Morgan Stanley notes that each 1% of market share Amazon captures in this space could translate to roughly 120 basis points of upside to its U.S. gross merchandise value.
Morgan Stanley points out that Amazon has already built the necessary logistics network to support this grocery expansion. The firm also emphasizes that higher fresh merchandise margins and minimum $25 basket requirements position the fresh grocery initiative favorably.
The analysis suggests that Amazon’s fresh grocery business will likely be profitable, contributing to earnings before interest and taxes (EBIT) dollar upside for the company.
Morgan Stanley’s maintained Overweight rating reflects its positive outlook on Amazon’s growth trajectory as the e-commerce giant leverages its existing infrastructure to capture share in the substantial fresh grocery market.
In other recent news, Amazon is making significant strides with several developments. The company is reportedly working on augmented-reality glasses, internally codenamed Jayhawk, which will feature microphones, speakers, a camera, and a full-color display in one eye. In a strategic move, Amazon has acquired a stake in Colombian delivery company Rappi through a $25 million convertible note, with the potential to increase its ownership to 12% if certain milestones are achieved. Additionally, Amazon Pharmacy has expanded its RxPass prescription service to Texas, offering Prime members access to over 50 commonly prescribed medications for $5 per month with free delivery, targeting nearly 2 million Texans in pharmacy deserts.
On the investment front, Cantor Fitzgerald has reiterated its Overweight rating on Amazon stock, maintaining a positive outlook following the company’s partnership with JetBlue to provide in-flight Wi-Fi services via the Kuiper satellite network beginning in 2027. Similarly, Barclays has also reiterated an Overweight rating on Amazon, with a focus on the growth of Amazon Web Services (AWS) AI workloads. Barclays notes that Anthropic currently contributes to AWS growth and has the potential to significantly increase its impact in the future. These developments highlight Amazon’s ongoing efforts to innovate and expand its reach across various sectors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.