Amazon stock price target raised to $303 from $272 by BofA Securities

Investing.com - BofA Securities has raised its price target on Amazon.com (NASDAQ:AMZN) to $303.00 from $272.00 while maintaining a Buy rating on the stock. This target aligns with the broader analyst consensus, which according to InvestingPro data shows a strong buy recommendation (1.28) with price targets ranging from $230 to $306.

The firm’s decision follows results indicating that ramping AWS capacity can drive growth, with commentary suggesting strong demand for Amazon’s Trainium chips. This growth potential is supported by Amazon’s impressive 10.87% revenue growth over the last twelve months and a robust 18% five-year revenue CAGR.

BofA Securities believes that Amazon’s capacity outlook commentary will support optimism regarding AWS upside, while the upcoming re:Invent conference will showcase key advances with Trainium, Nova, and potentially new partners.

The firm also noted that Amazon’s eCommerce strength continues, with Amazon retail gaining market share from competitors. InvestingPro identifies Amazon as a "prominent player in the Broadline Retail industry" with an overall Financial Health Score rated as "GREAT" - just one of many insights available in the comprehensive Pro Research Report covering this $2.38 trillion market cap giant.

BofA Securities updated its valuation by rolling forward its sum-of-the-parts basis to 2027 estimates from 2026 estimates, with the new price target implying a 33x multiple on 2027 GAAP earnings per share. While Amazon currently trades at a P/E ratio of 34.27, its PEG ratio of 0.58 suggests it may be trading at a low P/E relative to its near-term earnings growth potential.

In other recent news, Amazon reported its third-quarter earnings, revealing a revenue of $180 billion, which marked a 12% increase year-over-year, excluding foreign exchange impacts. This figure surpassed analyst expectations by over 1%. The company’s operating income reached $21.7 billion, a record-high 12% margin, exceeding Wall Street forecasts by 12%. Amazon’s cloud division, AWS, demonstrated significant growth, with a quarter-over-quarter acceleration of approximately 270 basis points to over 20%, its highest in eleven quarters. Following these results, Evercore ISI raised its price target for Amazon to $335, maintaining an Outperform rating. Similarly, Canaccord Genuity increased its price target to $300, keeping a Buy rating. Goldman Sachs also reiterated its Buy rating and raised its price target from $275 to $290, citing Amazon’s potential for compounded revenue growth and operating margin expansion. These developments underscore Amazon’s strong financial performance and the positive outlook from analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.