Amazon (AMZN) has received a new Buy rating, initiated by Mizuho Securities analyst, Kevin Wang.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Kevin Wang has given his Buy rating due to a combination of factors that highlight Amazon’s growth potential, particularly through its AWS segment. The anticipated acceleration in AWS growth is driven by increased capacity and the scaling demand from its GenAI client, Anthropic. This growth is expected to be bolstered by the proliferation of GenAI applications and the rising demand for inference, which could lead to significant upside potential for AWS.
Additionally, while retail growth estimates for North America are slightly lower than consensus, improvements in delivery capabilities and logistics are expected to enhance retail margins. The strategic investments in automation and logistics are likely to unlock substantial opportunities, contributing to a positive long-term outlook. Catalysts such as AWS’s accelerated revenue growth and the launch of Project Rainier data centers further support the Buy rating, with a price target of $300 based on a blend of valuation methods.
In another report released on September 26, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $242.00 price target.