Amazon’s (AMZN) cloud unit Amazon Web Services (AWS) is to become the strategic cloud provider for Sun Life. The insurance company will use AWS solutions to pursue new clients and enhance employee’s efficiency. AMZN shares rose 1.01% to close at $3,349.63 on August 27.
As part of the strategic partnership, Sun Life will use AWS cloud technologies, including analytics, machine learning, storage, security, and databases to enhance how it deals with clients and employees. (See Amazon stock charts on TipRanks)
A partnership with AWS enabled Sun Life to become the first Canadian company to launch an immersive cloud skills’ training program. Additionally, Sun Life will certify the first 450 businesses and employees with the AWS program over the next few months. It also plans to train more employees as it seeks to accelerate cloud adoption and develop new client-facing capabilities.
“By running on the world’s leading cloud, Sun Life has the agility to quickly build and scale new platforms to give customers more ways to manage their portfolios as the demand for digital services continues to grow,” said Frank Fallon, AWS Vice President of Financial Services.
Recently, Morgan Stanley analyst Brian Nowak reiterated a Buy rating on Amazon with a $4,300 price target, implying 28.37% upside potential to current levels. According to the analyst, the e-commerce giant’s growing third-person logistics plan and same-day shipping offerings are on course to double and reach 18% of the U.S. population.
“Looking ahead, we look for evidence of 1) faster than expected top-line growth from the current businesses into the holidays 2) growing evidence of traction of third party logistics and/or faster share gains in the same day cities or 3) lower than expected company-wide incremental profit pressure from the investment spend given the continued strength of AMZN’s high margin revenue streams AWS, advertising, and subscriptions,” Nowak stated.
Consensus among analysts is a Strong Buy based on 30 Buys. The average Amazon price target of $4,214.13 implies 25.81% 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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