Stifel raises Amazon stock price target to $275 from $245

On Friday, Stifel analysts increased their price target for Amazon.com (NASDAQ:AMZN) shares, lifting it from $245.00 to $275.00, while reiterating a Buy rating on the stock. Currently trading at $238.83 and near its 52-week high, Amazon has shown impressive momentum with a 47% gain over the past six months. The adjustment follows Amazon’s guidance for the first quarter, which was below expectations due to foreign exchange headwinds and the impact of the leap year. InvestingPro data shows Amazon maintains a "GREAT" financial health score, suggesting strong fundamentals despite near-term headwinds. Despite this, the company has outlined plans for substantial capital expenditures, projecting about $100 billion in Capex for the year. This figure aligns with Amazon’s strategy to ramp up investments in line with anticipated consumer demand. With annual revenue reaching $620 billion and maintaining a healthy 48% gross profit margin, Amazon appears well-positioned to support these investments.

The analysts highlighted Amazon’s focus on artificial intelligence and the potential for increased consumption as costs decline. They pointed out that Amazon’s AI service, DeepSeek, is now available, signaling the company’s commitment to integrating advanced technologies into its operations. For deeper insights into Amazon’s AI initiatives and financial metrics, InvestingPro subscribers can access comprehensive analysis and 15+ additional ProTips.

Amazon’s management has dedicated significant discussion to AI during their recent presentations, emphasizing its role in driving future growth. The anticipated increase in consumer usage, as costs for these technologies decrease, is seen as a catalyst for the company’s performance.

The substantial Capex planned for the year underscores Amazon’s aggressive approach to expansion and innovation. The projected $100 billion investment indicates confidence in the company’s growth trajectory and a commitment to maintaining its competitive edge.

The Stifel analysts’ revised price target reflects their positive outlook on Amazon’s strategic investments and the expected benefits from its AI initiatives. With the maintained Buy rating and a highly bullish analyst consensus of 1.39, they signal their belief in the company’s ability to navigate through short-term headwinds and capitalize on long-term opportunities. Based on InvestingPro’s Fair Value analysis, Amazon currently appears to be trading near its fair value.

In other recent news, Amazon has seen a series of price target adjustments from various analyst firms, all focusing on the company’s earnings and revenue potential. Oppenheimer lifted its target to $260, citing a positive outlook based on higher financial estimates for 2025 and 2026, and strong demand signals from Amazon Web Services (AWS). In addition, the firm noted Amazon’s belief in the significant potential of artificial intelligence.

Raymond (NSE:RYMD) James raised its Amazon stock price target to $275, highlighting AWS’s AI segment’s rapid growth despite current constraints. The firm also mentioned Amazon’s recent financial performance surpassing expectations, with an operating profit approximately $4 billion ahead of the trailing four-quarter average.

Cantor Fitzgerald maintained an Overweight rating and a $270 price target, indicating that despite Amazon’s substantial capital expenditure forecast for fiscal year 2026, the company’s core business remains robust. The firm sees a clear path for accelerated growth in AWS.

Redburn-Atlantic reiterated a Buy rating and a $280 price target, praising Amazon’s management of overcapacity issues, particularly in its e-commerce segment. Lastly, RBC Capital Markets raised Amazon’s price target from $255 to $265, reflecting mixed Q4 performance with some segments underperforming while others showed strength. The firm highlighted Amazon’s strong position in AI and the potential for the company to keep growing its earnings.

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