Amazon (AMZN) rose 1.5% on Monday after Merill Lynch and Wells Fargo, among others, lifted the price target on the stock. The analysts’ optimism comes ahead of the company’s 2Q earnings on July 30. Amazon has benefited from an online user boom helping its shares surge over 65% so far this year.
Wedbush analyst Michael Pachter lifted the price target to $3,500 from $3,050. Pachter believes that “Covid-19 and the stay-at-home response for many consumers should result in substantial revenue upside in Q2, with the company’s burgeoning grocery business likely a key driver.” Further, Pachter added, “We expect many consumers to remain reticent to return to normal consumption patterns so long as the threat of infection is meaningful.”
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 37 Buys and 2 Holds. The average price target of $3,194.22 implies an upside potential of 4.6%. (See AMZN stock analysis on TipRanks).