DBS analyst Nashrullah Putra Sulaeman has maintained their bullish stance on AMZN stock, giving a Buy rating yesterday.
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Nashrullah Putra Sulaeman has given his Buy rating due to a combination of factors that highlight Amazon’s strong market position and growth potential. The company’s e-commerce segment is poised for market share growth and margin expansion, with net profit surpassing expectations, driven by AWS profitability and stronger non-operating income. Despite a drop in free cash flow due to increased capital expenditures, Amazon’s retail segment is recovering, showing sustained profitability and improved operating margins, thanks to strategic logistics regionalization.
Additionally, AWS remains a key profit driver for Amazon, contributing significantly to operating profit despite macroeconomic challenges. The segment is investing in AI-driven cloud solutions, positioning it for future growth. Furthermore, Amazon’s advertising segment is expanding rapidly, outperforming peers and leveraging its e-commerce ecosystem to enhance revenue. While there are risks such as supply chain disruptions and regulatory actions, the overall growth prospects and strategic initiatives support the Buy rating.
In another report released yesterday, J.P. Morgan also reiterated a Buy rating on the stock with a $240.00 price target.