Benchmark lifts Amazon stock price target to $265 from $215

On Tuesday, Benchmark analyst Daniel Kurnos raised the price target on Amazon.com (NASDAQ:AMZN) shares to $265, up from the previous $215, while maintaining a Buy rating on the stock. With Amazon’s stock currently trading at $237.42 and boasting a market capitalization of $2.5 trillion, Kurnos anticipates a strong fourth-quarter earnings report, expected to be released on Thursday after the market closes. The analyst’s projections align with the general market consensus, and he suggests that Amazon may exceed expectations on all metrics. According to InvestingPro data, the stock has shown impressive momentum, trading near its 52-week high of $241.77.

Kurnos noted that Amazon’s performance in the fourth quarter of 2024 likely benefited from gains in both e-commerce and offline channels. The company is considered to have been a "destination winner" during that period, supported by robust revenue growth of 11.93% over the last twelve months. Despite this positive outlook, Kurnos expressed some caution due to the high expectations and enthusiasm from the sell-side regarding Amazon’s operating income margins, particularly in the first quarter of 2025.

The Benchmark analyst believes in Amazon’s long-term growth potential and stated that any dip in the company’s share price would present a buying opportunity. However, he also mentioned the possibility of a temporary halt in the stock’s upward movement, citing potential risks that could affect the share price trajectory. He advises a more cautious approach during this earnings period, acknowledging the heightened sentiment surrounding the company’s financial results.

Investors and market watchers are now looking forward to Amazon’s earnings release, which will provide further insights into the company’s performance and its impact on the stock’s value. Kurnos’s revised price target reflects his confidence in Amazon’s continued growth, despite the potential short-term volatility in the stock market.

In other recent news, Amazon.com has been the focus of several analyst firms. BofA Securities maintained a Buy rating for Amazon, projecting a strong fourth quarter with estimated revenues of around $187 billion. The firm also anticipates a GAAP operating profit of $19.7 billion, surpassing the general market forecast of $18.9 billion. BofA Securities also expressed a positive outlook on Amazon Web Services (AWS), predicting a growth target of 19-20%.

In contrast, Loop Capital Markets adjusted the price target for United Parcel Service (NYSE:UPS) shares to $115 from $120, while maintaining a Hold rating. This adjustment follows UPS’s strategic decision to reduce its business with Amazon by 50% over the next 18 months.

Amazon is also increasing its advertising on social media platform X, owned by Elon Musk, despite previous concerns related to hate speech. UBS analyst Stephen Ju increased the price target for Amazon shares to $275 from $264, maintaining a Buy rating. Ju’s analysis indicates a period of lower capital intensity for Amazon’s e-commerce segment.

Lastly, Bernstein analysts raised their price target on Amazon shares to $280 from $265, maintaining an Outperform rating. They anticipate a strong fourth quarter for Amazon, driven by a robust holiday shopping season and increased advertising revenues. These are the recent developments for Amazon and UPS.

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