Telsey reiterates Outperform rating on Amazon stock as grocery delivery expands

Investing.com - Telsey Advisory Group has reiterated its Outperform rating and $265.00 price target on Amazon.com (NASDAQ:AMZN), currently trading at $224.17, following the company’s expansion into same-day delivery of perishable groceries. The move comes as Amazon continues to leverage its massive $670 billion annual revenue base to expand market share.

The expansion creates a one-stop shop for customers and strengthens Amazon’s position against grocery competitors including Albertsons, Kroger, Target, and Walmart, according to Telsey’s research note.

Telsey’s latest pricing analysis from June 2025 indicates Amazon Fresh’s online grocery prices are competitively positioned, approximately 1% above Walmart and between 5% and 13% lower than Albertsons, Kroger, and Target .

The research firm expects Amazon to continue gaining market share by leveraging its Prime membership base, small business relationships, and technological advantages, with growth opportunities in grocery, private brands, pharmacy, logistics, and generative AI.

Telsey’s $265 price target is based on applying an enterprise value to EBITDA multiple of approximately 15 times its 2026 EBITDA estimate of about $193 billion.

In other recent news, Amazon has expanded its same-day grocery delivery service to over 1,000 cities and towns across the United States, with plans to reach more than 2,300 locations by the end of 2025. This move is part of Amazon’s strategy to integrate groceries more deeply into its Prime ecosystem, which Evercore ISI believes will strengthen customer engagement. Following Amazon’s announcement of free same-day delivery for fresh groceries, Mizuho maintained its Outperform rating and $115.00 price target on Walmart, despite the increased competition. Freedom Broker has raised its price target for Amazon to $255.00 from $240.00, maintaining a Hold rating after Amazon’s strong Q2 FY2025 financial results. The company exceeded both market expectations and its own guidance, with notable gains in retail efficiency. Evercore ISI also reiterated an Outperform rating on Amazon, maintaining a $280.00 price target, emphasizing the company’s strategic moves in the grocery sector. Additionally, Amazon-backed Anthropic has offered its Claude AI model to the U.S. government for $1, joining other AI startups in seeking federal contracts. These developments underscore Amazon’s continued efforts to expand its market presence and enhance its service offerings.

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