Amazon Consensus Price Target Rises Following Strong Earnings
Amazon.com Inc (NASDAQ: AMZN) hit a new high on Friday, getting close to a $2 trillion market cap, after its first-quarter results blew past analyst expectations. The company announced first-quarter revenue of $108 billion and a gross margin of 42.5%. Net income came in at $8.1 billion, or a 7.5% net margin, and earnings per share was $15.80.
A number of analysts increase their price targets off the back of the earnings, bringing their average 12-month price target up from $3,993.18 to $4,066.72 from a total of 47 analysts who cover the name.
Below are the most recent analyst changes as of the time writing:
- Keybanc raises target price to $4,000 from $3,700
- Piper Sandler raises target price to $4,000 from $3,903
- Cowen and Company raises target price to $4,600 from $4,400
- Jefferies raises target price to $4,200 from $4,000
- JP Morgan raises target price to $4,600 from $4,400
- Atlantic equities raises target price to $4000 from $3800
- Credit Suisse raises target price to $4,000 from $3950
- Needham raises target price to $4,150 from $3,700
- MKM Partners raises target price to $4,075 from $3,975
- Susquehanna raises target price to $5,500 from $5,200
- Wedbush raises target price to $4,300 from $4,000
- Guggenheim raises target price to $4,200 from $4,000
- Mizuho raises target price to $4400 from $4000
- BMO raises target price to $4300 from $4200
- Truist Securities raises target price to $4000 from $3750
- Deutsche Bank raises target price to $4500 from $4250
- Stifel raises target price to $4400 from $4000
- Raymond James raises target price to $4125 from $4000
- Oppenheimer raises target price to $4400 from $4200
- UBS raises target price to $4350 from $4150
- Canaccord Genuity raises target price to $4400 from $4100
- BOFA global research raises price objective to $4360 from $4150
In BMO’s note to investors, their analyst Daniel Salmon congratulates Amazon on a great quarter and writes, “Recent years’ accelerated levels of investment in fulfillment and logistics have left AMZN in the enviable position of being able to handle holiday-season level volumes every day, which should help keep competitive concerns at bay.” He is not worried about 2021 being a “harvest year” as due to COVID-19 restrictions being eased in the western world (excluding Canada who’s done a third world-esq level of COVID vaccinations).
Salmon doesn’t have much to say other than he remains super bullish on the name as he believes all the segments, being retail, Amazon Prime, services, advertising, and AWS, will continue to see strong volume. Below you can see BMO’s updated second quarter, 2021, and 2022 estimates for Amazon.
In Canaccord’s note, their analyst Michael Graham increased their 12-month price target from $4,100 to $4,400 and reiterated their buy rating on the company. He says that Amazon had another strong quarter showing year-over-year growth of 41% as growth came from Amazon’s eCommerce with newer categories being introduced and by their Prime members just ordering more in general.
Graham writes, “The prime question for Amazon shares right now may be whether gains in eCommerce habits will persist and help power through difficult COVID-impacted revenue growth.” He adds that Amazon’s returns have been almost triple the benchmark S&P 500 returns on a 6-month basis, reflecting that the market has already priced in a potential deceleration, “and leaving room for the stock to work nicely from here.”
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.