Jefferies raises Nvidia stock price target to $205 on strong demand
On Friday, HSBC analysts revised their price target for Amazon.com (NASDAQ:AMZN) stock, lowering it to $240 from the previous $280, while reaffirming their Buy rating on the company’s shares. The adjustment comes amid ongoing concerns about tariff uncertainties which have impacted the market. With a current market capitalization of $2.02 trillion and a P/E ratio of 33.69, Amazon remains a dominant force in global markets. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.
Christopher Johnen of HSBC remarked on the resilience of Amazon, noting that despite the tariff challenges, the company remains in a strong strategic position. This assessment aligns with InvestingPro’s financial health score of "GOOD," supported by robust revenue of $637.96 billion. Johnen emphasized the significance of Amazon Web Services (AWS), stating that it accounts for approximately 70% of Amazon’s discounted cash flow (DCF)-based Sum of the Parts (SOTP) value. AWS continues to be a critical factor in Amazon’s valuation, according to HSBC’s analysis.
The analyst also acknowledged the recent decline in valuation multiples for Amazon, attributing it partly to a lack of consensus on earnings revisions. However, Johnen expects this to change following the company’s financial results. Despite adjusting estimates and valuation assumptions to account for risks, HSBC still anticipates an approximate 26% upside to the newly set price target of $240.
The report highlighted Amazon’s continuous exposure to favorable structural themes and the company’s ability to "harvest the fruits of past investment." Even with the tariff-induced setbacks, HSBC does not perceive any weakening in Amazon’s competitive moat.
In conclusion, HSBC’s stance on Amazon remains positive, with the firm reiterating its Buy rating. The firm’s analysts project a significant potential gain for Amazon stock, despite the reduced price target and the current economic headwinds. This outlook is supported by the broader analyst consensus, which suggests a 30% upside potential. For deeper insights into Amazon’s valuation and growth prospects, investors can access comprehensive financial metrics and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Amazon reported strong financial results for the first quarter of 2025, surpassing Wall Street expectations with an earnings per share of $1.59 compared to the forecasted $1.37. The company’s revenue also exceeded predictions, reaching $155.7 billion against an anticipated $155.29 billion. Amazon’s cloud computing arm, AWS, continues to be a significant revenue driver, posting a 17% increase year-over-year, contributing $29.3 billion to the quarter’s revenue. Despite these positive outcomes, Amazon’s stock experienced a decline of 2.21% in after-hours trading, reflecting potential investor concerns over competitive pressures in the e-commerce sector.
Amazon has projected net sales for the second quarter of 2025 to be between $159 billion and $164 billion, with operating income expected to range from $13 billion to $17.5 billion. The company remains focused on expanding its artificial intelligence capabilities and preparing for potential tariff scenarios that could impact strategic planning. Notably, Amazon recently launched new products, including Alexa Plus, and expanded its AI capabilities, indicating a strategic push towards innovation. Analysts from firms such as Barclays (LON:BARC) and Goldman Sachs have shown interest in Amazon’s AI and AWS developments, highlighting the company’s ongoing efforts to enhance its technological infrastructure and customer offerings. These recent developments underscore Amazon’s commitment to maintaining its competitive edge in the rapidly evolving tech landscape.
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