Already a major investor in the state, Amazon (AMZN) is expanding in Louisiana with a new high-tech fulfillment facility. As shopping continues to shift online, the company is increasing its capacity to keep up with demand.
The company has announced plans to build its first robotics fulfillment center in Louisiana. The facility will be located in Shreveport city.
Amazon’s new facility will bring an additional 1,000 full-time jobs to the state. The company currently employs more than 2,000 people directly in Louisiana.
People working at the robotics fulfillment facility will start with a minimum wage of $15 per hour. They will also enjoy an array of benefits, such as medical insurance, paid leave, and regular contributions to their retirement savings accounts.
The latest investment will magnify Amazon’s economic impact in Louisiana. The company has invested more than $250 million in the state in the past decade. Furthermore, its presence has contributed $220 million to the state’s economy.
Amazon says its new facility will enable local businesses to reach new customers. The company allows third-party businesses to tap into its fulfillment infrastructure to deliver packages to customers through its Fulfillment with Amazon program. (See Amazon stock analysis on TipRanks)
“We’re thrilled to be able to expand our operations in Northwest Louisiana and we look forward to becoming part of the fabric of the local community,” said Amazon’s Amazon Regional Director of Operations William Hicks.
Monness analyst Brian White assigned a Buy rating with a price target of $4,500 on Amazon stock. White’s price target indicates 41.04% upside potential to the current price.
“We believe Amazon is uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation,” commented White.
Consensus among analysts on Wall Street is a Strong Buy based on 31 Buy ratings. The average analyst price target of $4,303.67 implies 34.89% upside potential to current levels.
AMZN scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating the stock is likely to outperform the market.