In a report released today, Daniel Kurnos from Benchmark Co. maintained a Buy rating on Amazon, with a price target of $260.00.
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Daniel Kurnos has given his Buy rating due to a combination of factors influencing Amazon’s current and future performance. Despite recent challenges, such as the AWS margin print and investment periods impacting free cash flow, Kurnos remains optimistic about Amazon’s potential. He highlights the company’s strategic moves, including the integration of robots in fulfillment and the anticipated growth in Amazon’s advertising and Prime Video ecosystem, which are expected to yield strong margins.
Additionally, Kurnos points out that Amazon’s market position remains robust, with continued share gains and a focus on higher-income consumers, which provides some insulation from broader economic trends. He anticipates a reacceleration in AWS growth and improved operating income margins, with the potential for a major AI contract enhancing prospects further. Despite some pressures on average selling prices and margins due to competitive pricing and extended Prime Days, Kurnos is confident in Amazon’s ability to navigate these challenges and deliver strong performance, particularly in the upcoming holiday quarter.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $252.00 price target.