Market News

Amazon to Open Fulfillment Facility in Baton Rouge

Amazon (AMZN) plans to open a robotics fulfillment center in Baton Rouge, which would be its second such facility in the state of Louisiana. 

At the 820,000 square-foot facility, Amazon employees will handle tasks such as picking, packing, and shipping small-size items such as books and toys. The company expects to create more than 1,000 full-time jobs at the facility, with wages starting at $15 per hour. 

In addition to what it calls an industry-leading starting wage, Amazon plans to offer employees other benefits such as medical insurance and a 401(k) program where the company will match 50% of employees’ contributions. (See Amazon stock chart on TipRanks).

“We’re excited to be growing our operations in the heart of Louisiana and want to thank the local community and all of the state and local leaders for their support in making this project possible,” said Bri Tye, Amazon’s Regional Director of Operations.

“I am proud to welcome this new investment to Louisiana’s Capital Region, and I thank Amazon for its continued investment in our great state,” said Louisiana Governor John Bel Edwards.

Amazon says it directly employs more than 2,000 people in Louisiana and has enabled more than 750 indirect jobs. The company has invested more than $250 million in the state between 2010 and 2019, which has resulted in a $200 million additional boost to Louisiana’s economy.

Jefferies analyst Brent Thill recently reiterated a Buy rating on Amazon stock with a price target of $4,200. The analyst’s price target implies 22.98% upside potential.

Thill remains bullish on Amazon after conducting a proprietary survey and noting, among others, that the company is likely to benefit from faster growth in its higher-margin businesses. 

Thill told investors, “AMZN trades at a ~10% discount to its historical average EV/EBITDA multiple, despite a fundamental outlook that is arguably better than ever given behavioral changes incited by the pandemic that have resulted in a permanent increase in e-commerce adoption.”

Consensus among analysts is a Strong Buy based on 31 Buys. The Amazon average analyst price target of $4,295.17 implies 25.76% upside potential to current levels.

AMZN scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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