Amazon (AMZN – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Laura Martin from Needham maintained a Buy rating on the stock and has a $220.00 price target.
Laura Martin’s rating is based on a combination of factors that highlight Amazon’s strong financial performance and growth potential. Amazon reported impressive first-quarter sales of $155.7 billion, marking a 9% year-over-year increase, which surpassed expectations. The company’s operating income also showed significant growth, rising by 20% year-over-year, and operating margins improved notably.
Additionally, Amazon Web Services (AWS) continues to be a key driver of growth, with revenues increasing by 17% year-over-year and operating margins expanding. The company’s high-margin business segments are experiencing rapid growth, and service revenues, which account for a substantial portion of sales and operating income, suggest potential for valuation multiple expansion. These factors collectively support the Buy rating for Amazon’s stock.
In another report released today, HSBC also maintained a Buy rating on the stock with a $240.00 price target.