DBS analyst Nashrullah Putra Sulaeman has maintained their bullish stance on AMZN stock, giving a Buy rating on May 14.
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Nashrullah Putra Sulaeman has given his Buy rating due to a combination of factors that highlight Amazon’s strong performance and growth potential. Amazon’s net profit exceeded market expectations, largely driven by the profitability of its Amazon Web Services (AWS) segment and increased non-operating income. Despite a decline in free cash flow due to higher capital expenditures, the company’s revenue grew by 9% year-over-year, with AWS experiencing a 17% growth and margin expansion.
Additionally, Amazon’s retail segment is on a recovery path, showing sustained profitability and improved operating margins. The company’s strategic regionalization of its logistics network has led to lower delivery costs, enhancing its competitive edge in the expanding U.S. e-commerce market. Furthermore, Amazon’s advertising segment is gaining traction, with significant growth in ad revenue, indicating its ability to leverage its e-commerce ecosystem effectively. While there are risks such as supply chain disruptions and regulatory challenges, Amazon’s continued investment in AI-driven cloud solutions and its dominant market position support a positive outlook.
According to TipRanks, Putra Sulaeman is a 4-star analyst with an average return of 26.0% and a 100.00% success rate.
In another report released on May 14, Citi also reiterated a Buy rating on the stock with a $225.00 price target.