Amazon (AMZN) has inked a strategic partnership with Abu Dhabi Investment Office. Reuters reports that the two will establish a fulfillment center by 2024. The center is to be built in accordance with the tech giant’s carbon reduction strategies. AMZN shares fell 2.15% to close at $3,503.5 on November 26.
Amazon is a U.S. company that provides online retail shopping services and cloud computing services. The company operates through three business segments: North America, International, and Amazon Web Services.
Abu Dhabi Fulfillment Center
The fulfillment center should create thousands of jobs while also enhancing Abu Dhabi’s logistics sector. Furthermore, it is expected to benefit the retail ecosystem at a time when e-commerce is growing at an impressive rate. The construction of the fulfillment center will also align with the United Arab Emirates UAE ambitions to achieve net-zero emissions by 2050. (See Top Smart Score Stocks on TipRanks)
Analyst Rating
Last week, Guggenheim analyst Seth Sigman reiterated a Buy rating on Amazon with a $4,300 price target, implying 22.73% upside potential to current levels. The analyst remains bullish as the e-commerce giant enters fiscal 2022. He expects online channel share gains to reaccelerate early next year, after months of declines.
Sigman also expects normalizing consumer spending growth to be good for stocks. The analyst expects a significant positive inflection on Amazon in early 2022, compared to moderating sales and merging trends in the recent past.
Consensus Rating
Consensus among analysts is a Strong Buy, based on 31 Buys. The average Amazon price target of $4,095 implies 16.88% upside potential to current levels.
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