Analyst Brian Nowak from Morgan Stanley maintained a Buy rating on Amazon and keeping the price target at $300.00.
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Brian Nowak has given his Buy rating due to a combination of factors that highlight Amazon’s strong potential for growth and efficiency improvements. One of the key reasons is the anticipated tax benefits that Amazon is expected to capture, amounting to approximately $15 billion annually. These benefits are likely to be reinvested into Amazon Web Services (AWS), accelerating the company’s growth trajectory.
Additionally, Nowak points out that Amazon’s strategic investments in robotics and automation could lead to significant cost savings. By 2027, the integration of next-generation robotics in Amazon’s warehouses is projected to result in $2 billion to $4 billion in annual recurring savings. These factors, combined with Amazon’s aggressive investment in generative AI, position the company well for sustained growth and efficiency, justifying the Buy rating.
Nowak covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Nowak has an average return of 6.8% and a 61.13% success rate on recommended stocks.
In another report released on July 25, Monness also maintained a Buy rating on the stock with a $265.00 price target.