Mark Mahaney, an analyst from Evercore ISI, maintained the Buy rating on Amazon (AMZN – Research Report). The associated price target remains the same with $270.00.
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Mark Mahaney has given his Buy rating due to a combination of factors that highlight Amazon’s strategic positioning and growth potential in the satellite internet sector. One of the key reasons is Amazon’s Kuiper project, which is seen as the only realistic competitor to SpaceX’s Starlink in the LEO satellite internet broadband space. This is significant because the market has high entry barriers due to limited spectrum availability and the capital-intensive nature of the industry.
Additionally, the financial projections for Starlink suggest a lucrative market opportunity, indicating that Kuiper could become a highly profitable venture for Amazon. The target market for Kuiper is the expansive $1 trillion terrestrial telecom and broadband sector, far exceeding the $25 billion Sat Com market. This potential justifies Amazon’s substantial investment in Kuiper. Furthermore, the outlook for Kuiper’s launch has improved, with optimism surrounding its initial launch and future prospects, supported by partnerships with launch providers like Blue Origin.
According to TipRanks, Mahaney is a 5-star analyst with an average return of 18.1% and a 55.74% success rate. Mahaney covers the Communication Services sector, focusing on stocks such as Pinterest, Meta Platforms, and Alphabet Class A.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $265.00 price target.