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On Friday, Benchmark analyst Daniel Kurnos adjusted the price target for Amazon.com (NASDAQ:AMZN) stock, raising it slightly to $270.00 from the previous target of $265.00. The firm maintained a "Buy" rating on the e-commerce and cloud computing giant’s shares, which currently trades near its 52-week high of $242.52. According to InvestingPro data, Amazon’s market capitalization stands at $2.41 trillion, making it one of the world’s most valuable companies. Kurnos provided insight into the decision, noting a shift in financial expectations for the company. Despite a reduction in revenue forecasts, the analyst anticipates an increase in profit projections, leading to the enhanced price target.
Kurnos elaborated on the rationale behind the price target change, stating that although revenue estimates are being lowered, there is an upward adjustment in profit expectations. This adjustment is what underpins the modest increase in the price target for Amazon’s stock. The company has demonstrated strong momentum, with InvestingPro showing a remarkable 46.73% price return over the past six months and revenue growth of 11.93% in the last twelve months. The analyst also touched on the broader market, suggesting that while consensus revenue expectations might need to be recalibrated, Amazon’s profit margins are expected to remain stable.
The analysis by Benchmark includes a forward-looking perspective on Amazon’s performance for the latter half of 2025. Kurnos mentioned that supply constraints affecting Amazon Web Services (AWS) could potentially ease in the second half of the year. This view aligns with the broader analyst consensus, as InvestingPro data reveals a strongly bullish sentiment with a consensus rating of 1.39 (where 1 is Strong Buy). This potential development, combined with the expectation of stable margins, paints a positive outlook for Amazon, according to the analyst. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with over 15 additional ProTips and a detailed Pro Research Report covering Amazon’s financial health and growth prospects.
Furthermore, Kurnos addressed the investment strategy in light of the new price target, expressing confidence in Amazon’s prospects. He recommended purchasing Amazon shares during price dips, viewing the current situation as an opportunity for investors. Trading at a P/E ratio of 47.94, the stock reflects high growth expectations. However, he also acknowledged the possibility of facing tougher retail comparisons in the second half of the year, which could pose challenges for the company.
In conclusion, Benchmark’s revised price target reflects a nuanced view of Amazon’s financial future, balancing lower revenue forecasts with higher profit expectations and a potential easing of AWS supply constraints. The analysis suggests a continued positive trajectory for Amazon, with the firm encouraging investment in the company’s stock amidst market fluctuations.
In other recent news, Amazon.com has seen its stock price targets raised by several analyst firms. Stifel analysts increased their target for Amazon shares from $245 to $275, citing the company’s plans for significant capital expenditures and focus on artificial intelligence. Similarly, Oppenheimer analyst Jason Helfstein lifted his price target for Amazon to $260 from $230, reflecting a positive outlook based on higher financial estimates and strong demand for Amazon Web Services (AWS).
Raymond (NSE:RYMD) James analyst Josh Beck also raised his price target for Amazon to $275 from $260, based on the performance of AWS and its AI business. Meanwhile, Cantor Fitzgerald maintained its Overweight rating and a $270 price target for Amazon, citing the company’s robust core business and potential for margin growth within its retail division. Redburn-Atlantic reiterated a Buy rating and a $280 price target, praising Amazon’s competent management of overcapacity issues.
These recent developments highlight Amazon’s strategic investments, its commitment to integrating advanced technologies, and its aggressive approach to expansion. Analysts from these firms signal their belief in Amazon’s ability to navigate through short-term headwinds and capitalize on long-term opportunities.
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