Amazon stock price target raised to $285 by Citizens JMP

Investing.com - Citizens JMP analyst Andrew Boone raised the price target for Amazon.com (NASDAQ:AMZN) to $285.00 while maintaining a Market Outperform rating. This aligns with the broader analyst sentiment, as InvestingPro data shows 21 analysts have recently revised their earnings estimates upward, with price targets ranging from $220 to $306.

The price target adjustment comes amid observations about Amazon’s automotive marketplace operations, where the analyst noted significant disconnects between Amazon and auto dealers.

According to Citizens JMP’s research, many dealers were unaware of the Amazon partnership until its launch day, creating a disjointed customer experience with sales teams unprepared to support customers through the Amazon purchasing process.

The analysis revealed that dealers’ sales forces were unable to answer questions about Amazon transactions, with inquiries needing to be directed to Amazon’s support team, highlighting separation between dealer operations and the Amazon platform.

Citizens JMP also noted that Amazon’s auto listings appear to be sourced at the OEM level, which creates further separation between dealer operations and Amazon, positioning Amazon Autos as less effective compared to other used vehicle marketplaces that are designed to hand off sales leads directly.

In other recent news, Amazon has been making significant strides in several areas. The company announced its expansion into same-day perishable grocery delivery, now available in over 1,000 U.S. cities, with plans to reach more than 2,300 cities by the end of 2025. This initiative is expected to enhance Amazon’s competitive position against grocery industry rivals. In addition, Amazon’s Project Kuiper satellite initiative is gaining momentum, with Cantor Fitzgerald maintaining an Overweight rating and a $280 price target, citing successful satellite launches and plans for a commercial beta service launch.

Furthermore, Morgan Stanley has reaffirmed its Overweight rating on Amazon, noting that increased capital expenditures are yielding solid returns, with a notable improvement in the company’s return on invested capital. Telsey Advisory Group and Evercore ISI have both reiterated their positive outlooks on Amazon, with Telsey emphasizing the expansion of grocery delivery as a strategic advantage. Evercore ISI also maintained a $280 price target, highlighting the integration of groceries into the Prime ecosystem as a way to enhance customer engagement. These developments reflect Amazon’s ongoing efforts to diversify and strengthen its business operations.

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