A spike in e-commerce activities amid the pandemic and rising enterprise cloud spending could drive Amazon (AMZN) stock higher, according to Brent Thill of Jefferies and Health Terry of Goldman Sachs. On July 20, both analysts raised Amazon’s price target to $3,800, implying a potential upside of 19% from its closing price of $3,196.84 on Monday.
Thill increased the price target to $3,800 from $3,100 and maintained a buy rating. Meanwhile, Terry raised it to $3,800 from $3,000, citing acceleration in e-commerce growth and strong momentum in Amazon’s cloud business.
Earlier this month, Cowen analyst John Blackledge increased the price target to $3,700 from $2,750 and reiterated a buy rating.
Amazon stock is on a tear and has jumped 73% this year. Acceleration in online sales in North America and increased IT infrastructure spending continue to support its upside.
Overall AMZN shows a Strong Buy Street consensus, with 36 analysts having a buy rating. Meanwhile, 2 analysts recommend a hold and 1 analyst has a sell rating. The average analyst price target stands at $3,057.06, implying a potential downside of 4.4%. (See Amazon’s stock analysis on TipRanks).