Bank of America has commented on the significant development in the auto retail sector following Hyundai’s announcement of a strategic partnership with Amazon (NASDAQ:AMZN). Despite the groundbreaking nature of this partnership, John Murphy, an analyst at Bank of America, does not perceive it as a direct threat to auto dealers. He pointed out that current franchise laws require dealers to act as intermediaries in auto transactions and most warranty repairs.
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Murphy views this partnership as an enhanced lead-generation tool that adds to the existing offerings of dealers. He also highlighted the potential evolution of Amazon’s role in this partnership, suggesting broader implications in the future.
Bank of America emphasized the partnership’s scope, extending beyond vehicle sales to potentially include leveraging Amazon’s computing capabilities. This could enable Hyundai to utilize advanced data analytics and generative AI tools for optimizing manufacturing, supply chain management, retail processes, and customer relationships. Murphy anticipates that this partnership could benefit large, well-run dealership groups by integrating Amazon’s technological advancements.
What is a Good Price for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 40 Buys assigned in the past three months, as indicated by the graphic below. After a 69% year-to-date rally in its share price, the average AMZN price target of $175.51 per share implies 20.9% upside potential.
