Bullish indicating open at $55-$60, IPO prices at $37
On Friday, BMO Capital Markets updated its outlook on Amazon.com Inc (NASDAQ:AMZN), increasing the price target to $280 from the previous $265 while maintaining an Outperform rating. The company, currently valued at $2.51 trillion, has seen its stock surge nearly 47% over the past six months, trading near its 52-week high of $242.52. The firm’s analysts noted that Amazon Web Services (AWS) could have expanded at a rate exceeding 19% even with certain supply limitations affecting capacity. They highlighted that AI revenue continued to see a triple-digit year-over-year growth. According to InvestingPro, Amazon maintains a "GREAT" financial health score of 3.16, with 14 additional key insights available to subscribers.
The analysts predict that as the procurement of chips, energy, and some components eases in the second half of 2025, AWS’s revenue should see an increase. Consequently, BMO Capital revised its 2025 estimated AWS revenue growth to 20% from 19% and raised the capital expenditure forecast to $82 billion, up from $61 billion. The company’s current revenue growth stands at 11.93% over the last twelve months, with InvestingPro analysis suggesting the stock is currently trading above its Fair Value.
In the e-commerce segment, third-party gross merchandise value (GMV) saw a 10% growth, attributed in part to the increased frequency of Same-Day and Next-Day delivery options. Despite these positive developments, the firm’s expectation for Amazon’s operating income in 2025 remains unchanged at $80 billion.
BMO Capital reaffirmed its Outperform rating and Top Pick status for Amazon stock, emphasizing the raised target price to reflect the company’s robust performance and promising outlook. The adjustments come amid a broader assessment of Amazon’s potential in a market that is gradually overcoming supply chain challenges.
In other recent news, Amazon.com has seen a flurry of activity from various analyst firms following its recent earnings report. BofA Securities raised its price target from $255 to $257, highlighting the company’s robust holiday season that boosted retail sales and led to revenue and profit surpassing expectations. Goldman Sachs also increased its price target for Amazon to $255, citing strong Q4 performance and a 19% year-over-year growth in AWS revenue.
Meanwhile, Citi analysts adjusted their price target slightly downward from $275 to $273, maintaining a Buy rating and expressing cautious optimism about the company’s future, particularly regarding Amazon Web Services (AWS). Pivotal Research Group maintained a $260 price target, forecasting an 11% revenue compound annual growth rate over the next five years, largely due to growth in AWS and other business segments. Lastly, Canaccord Genuity increased its price target to $280, noting that Amazon’s Q4 revenue was in line with consensus and operating income exceeded expectations.
These recent developments highlight the continued interest and confidence in Amazon from various analyst firms. While some adjustments have been made to price targets, the overall sentiment remains positive, with a particular emphasis on the potential of AWS and the company’s ability to exceed earnings and revenue expectations.
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