Morgan Stanley raises Amazon stock price target to $300 on lower tariffs

Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Amazon.com (NASDAQ:AMZN) to $300.00 from $250.00 while maintaining an Overweight rating on the stock. The new target represents significant upside from the current price of $222.26, with InvestingPro data showing Amazon trading at a P/E ratio of 35.47 and maintaining a GREAT financial health score.

The investment firm cited a more manageable tariff and geopolitical backdrop as key factors for the 20% increase in its price target, which represents a potential 35% upside from current levels.

Morgan Stanley has raised its 2026 and 2027 earnings per share estimates by 9% and 6% respectively, bringing the 2026 EPS forecast back to $8, in line with its projection from the first quarter of 2025 before factoring in potential 145% China tariffs.

The firm noted that the macro backdrop has "significantly improved" since mid-April when it published a report analyzing factors of uncertainty while maintaining its Overweight rating on Amazon.

Morgan Stanley also expressed increased conviction in Amazon Web Services (AWS) acceleration, citing factors including Anthropic, Azure’s generative AI strength, and results from a CIO survey, while maintaining Amazon as its "top pick" with a bull case price target of $350, representing 60% upside potential.

In other recent news, Amazon Web Services (AWS) has unveiled its custom cooling hardware designed for Nvidia (NASDAQ:NVDA)’s latest AI chips, marking a significant development in the tech industry. This new cooling solution, the In-Row Heat Exchanger (IRHX), is tailored to handle the high thermal demands of Nvidia’s Blackwell GPUs without requiring major data center renovations. In related developments, analysts at Citi have defended Vertiv Holdings (NYSE:VRT) and Nvent Electric following AWS’s announcement, describing the recent sell-off as "overdone" and highlighting Vertiv’s competitive advantages in power and thermal management. Citi also emphasized Nvent’s long-standing experience in liquid cooling as a competitive edge.

Meanwhile, Amazon.com has received positive attention from analysts. BofA Securities reiterated its Buy rating on Amazon, citing the potential of the company’s Kuiper satellite project to capture a significant share of the global satellite communications market. In another analyst note, Citizens JMP raised Amazon’s stock price target to $285, highlighting the company’s extensive reach and growth vectors across logistics, cloud services, and digital advertising. The firm also pointed out artificial intelligence as a catalyst for Amazon Web Services’ growth.

These recent developments underscore Amazon’s strategic moves to expand its technological capabilities and market reach, while analysts express confidence in both Amazon and related companies like Vertiv and Nvent.

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