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Investing.com - Raymond James has raised its price target on Amazon.com (NASDAQ:AMZN) to $275.00 from $230.00 while maintaining an Outperform rating on the stock. The new target represents a potential upside from Amazon’s current price of $222.86, with the e-commerce and cloud giant currently trading at a P/E ratio of 34.27 but with a favorable PEG ratio of 0.58.
The firm cited Amazon Web Services (AWS) exceeding the key growth threshold of 20% ahead of schedule, outpacing most buy-side expectations. This acceleration in AWS comes as Amazon’s overall revenue reached $670 billion in the last twelve months, with 10.87% year-over-year growth.
Raymond James noted that Trainium2 chip adoption is progressing well, with nearly 500,000 Trainium2 chips currently online and expectations for 1 million chips by year-end.
This chip business is reportedly growing 150% quarter-over-quarter and is expected to become a multi-billion dollar segment for Amazon.
The firm maintains its Outperform rating while monitoring for increased adoption of Bedrock and Trainium3, which could validate its bull case based on potential "tens of billions of dollars of AI Cloud ARR."
In other recent news, Amazon.com has seen a series of upgrades from various financial institutions following its strong third-quarter performance. Morgan Stanley increased its price target for Amazon to $315, citing better-than-expected results and a notable 20% year-over-year growth in Amazon Web Services (AWS). Telsey Advisory Group also raised its price target to $300, applying a higher enterprise value to EBITDA multiple based on their 2026 projections. Similarly, BMO Capital highlighted a 300 basis point sequential acceleration in AWS growth as they raised their target to $300. Citizens followed suit, citing Amazon’s financial results that exceeded guidance, increasing their target to $300 as well. BofA Securities adjusted their price target to $303, noting the potential growth driven by AWS capacity and demand for Amazon’s Trainium chips. These developments reflect a positive outlook from analysts regarding Amazon’s financial trajectory and operational performance.
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