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Investing.com - Citizens has raised its price target on Amazon.com (NASDAQ:AMZN) to $300.00 from $285.00 while maintaining a Market Outperform rating. The new target represents a 35% upside from the current price of $222.86, with analyst consensus targets ranging from $230 to $306. According to InvestingPro data, Amazon appears fairly valued based on its current Fair Value assessment.
The firm cited Amazon’s better-than-expected financial results, with revenue and operating income exceeding the high end of guidance by approximately 37 basis points and 240 basis points, respectively. Amazon reported $670.04 billion in revenue for the last twelve months, representing 10.87% year-over-year growth, with a healthy gross profit margin of 49.61%.
Citizens highlighted Amazon Web Services (AWS) as a key growth driver, noting that revenue accelerated 3 percentage points to 20% year-over-year on a business with over $130 billion annual run-rate, demonstrating benefits from artificial intelligence spending. InvestingPro identifies Amazon as a "prominent player in the Broadline Retail industry" with a strong 5-year revenue CAGR of 18%.
The firm pointed to upcoming infrastructure developments, including Trainium3 availability beginning in the first half of 2025 and Amazon’s plans to double its power capacity by 2027. The company operates with a moderate level of debt, with a debt-to-equity ratio of 0.48, allowing sufficient cash flows to cover interest payments.
Citizens also noted strong performance across Amazon’s other business segments, with retail described as "healthy" and advertising growth remaining stable at 22% year-over-year. With a P/E ratio of 34.27, Amazon trades at a high earnings multiple, yet InvestingPro notes it’s trading at a low P/E ratio relative to near-term earnings growth. Discover Amazon’s complete financial health profile and 8 additional ProTips in the comprehensive Pro Research Report, available for 1,400+ top US stocks.
In other recent news, Amazon reported its third-quarter 2025 earnings, showcasing a notable earnings per share of $1.95, which surpassed the forecasted $1.56. The company’s revenue reached $180.2 billion, slightly exceeding the anticipated $177.75 billion, marking a 12% increase year-over-year when excluding foreign exchange impacts. Analysts have responded positively to these results, with Evercore ISI raising its price target to $335 from $280, citing strong AWS growth and maintaining an Outperform rating. BofA Securities also increased its price target to $303 from $272, highlighting the potential growth driven by Amazon’s AWS capacity and demand for its Trainium chips. Canaccord Genuity echoed this sentiment by raising its price target to $300, pointing to AWS’s accelerated growth and improved operating income. Goldman Sachs reiterated its Buy rating and raised its price target to $290, emphasizing Amazon’s potential for long-term revenue growth and margin expansion. These developments indicate a strong performance by Amazon in the third quarter, with a focus on its cloud division’s growth and overall financial health.
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