India’s Reliance Industries is offering to sell a $20 billion stake in its retail arm Reliance Retail Ventures Ltd. (RRVL) to Amazon, according to a Bloomberg report.
Amazon (AMZN) has shown interest in investing in Reliance Retail but did not make any decision. Reliance Industries is looking to sell as much as a 40% stake in RRVL, India’s largest retail chain, to Amazon. US private equity firm KKR & Co. is reportedly in advanced talks to invest at least $1 billion in RRVL. L Catterton has also expressed interest in RRVL investment, according to the report.
On Sept. 9, US private equity firm Silver Lake Partners injected $1.02 billion into Reliance’s RRVL unit. Silver Lake has already invested $1.35 billion in Reliance’s telecommunications and digital services unit Jio Platforms. (See AMZN stock analysis on TipRanks).
Amazon shares have surged 76.9% year-to-date, driven by a spike in demand for e-commerce and cloud computing amid the coronavirus pandemic.
On Sept. 3, Robert W. Baird analyst Colin Sebastian maintained his Buy rating and a price target of $3,500 (7.1% upside potential), following a meeting with Amazon’s CEO of its Worldwide Consumer division. The executive shared his perspective on Amazon’s operations post-COVID, investments in logistics, and plans to manage the 4Q Peak, Prime Day, and Private Label. Following the meeting, the analyst confirmed Amazon as a top pick.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 37 Buys and 1 Hold. The average price target of $3,725.59 implies upside potential of about 14% to current levels.
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