S&P 500 falls as traders turn sour on tech
Investing.com - KeyBanc raised its price target on Amazon.com (NASDAQ:AMZN) stock to $303.00 from $300.00 on Friday, while maintaining an Overweight rating on the e-commerce and cloud computing giant. This target aligns with the broader analyst consensus, which according to InvestingPro data shows a strong "Buy" recommendation (1.28 rating) and a high target of $306.
The price target adjustment follows Amazon’s third-quarter results, which KeyBanc noted were better than expected, with Amazon Web Services (AWS) accelerating approximately 3 percentage points to 20% year-over-year growth. This performance contributes to Amazon’s overall revenue growth of 10.87% over the last twelve months, with total revenue reaching $670.04 billion.
KeyBanc expressed confidence that AWS can maintain growth above 20% in coming quarters, citing Anthropic training on the Rainier system and additional capacity coming online.
The firm also highlighted progress in Amazon’s retail segment, noting that the company’s grocery business already exceeds $100 billion.
KeyBanc reiterated its view that Amazon can maintain low double-digit growth with healthy free cash flow expansion through 2027, with the new price target reflecting a 31.5x price-to-earnings multiple on 2027 estimated earnings.
In other recent news, Amazon.com has seen a series of positive developments concerning its financial outlook and performance. The company’s third-quarter results have been a focal point, with Amazon Web Services (AWS) showing a notable acceleration in revenue growth to 20% year-over-year. This improvement has prompted multiple firms to adjust their price targets for Amazon. Oppenheimer increased its target to $290, citing AWS’s momentum and capacity expansion plans. Raymond James also raised its target to $275, highlighting AWS’s growth exceeding expectations. Morgan Stanley set a new target of $315, emphasizing Amazon’s better-than-expected third-quarter results and future guidance. Telsey Advisory Group and BMO Capital both elevated their targets to $300, with Telsey noting an increase based on future EBITDA estimates, while BMO highlighted AWS’s fastest growth since late 2022. These developments reflect a broad consensus among analysts about Amazon’s strong performance and future potential.
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