Amazon.com price target raised to $130 from $115 at Wolfe Research

Wolfe Research analyst Deepak Mathivanan raised the firm’s price target on Amazon.com to $130 from $115 and keeps an Outperform rating on the shares. The company’s Q4 results were above consensus on revenue and operating income while the Q1 outlook was largely in-line on sales but slightly below on EBIT, the analyst tells investors in a research note. The firm believes the underlying secular themes driving cloud migration "still have plenty of runway ahead." It expects Web Services growth to re-accelerate once the macro climate improves. Meanwhile, Amazon should benefit from slower capacity build out and efficiency gains in 2023, which should help margins recover nicely over next few quarters, contends Wolfe. Amazon remains a top pick for 2023.