Amazon (AMZN) on Monday launched the Amazon Supply Chain Services (ASCS), opening its expansive logistics network to businesses of all types. Bank of America (BAC) contends that the service will bring in more revenue for the e-commerce giant and incrementally boost its operating leverage.
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Forget margin or options. Here's how the pros trade AMZNAmazon, through the Fulfillment by Amazon service rolled out in 2006, has allowed sellers using its platform access to tap into its logistics network. Now, the company is expanding to outside businesses, offering services for them to move, distribute, fulfill, and ship their goods and products using its infrastructure.
BofA Makes Bullish Case
Responding to the news, BofA’s Justin Post reaffirmed his Buy rating on AMZN stock and also maintained his price target of $310, which suggests roughly 14% upside in the months ahead. The analyst noted the move, when considered alongside Amazon reaffirming its 2026 capital expenditure guidance, indicates that the e-commerce company now boasts sufficient capacity to absorb more third-party logistics demand.
Post is a five-star analyst who ranks 120 out of the more than 12,000 analysts tracked on TipRanks. He boasts a 65% success rate and an average return of 23%.
Amazon is one of Post’s key stock coverage at the Bank of America. The analyst’s ratings over the past 12 months have generated an average return of roughly 21% for investors, with 67 out of 81 of them being profitable, as the image below shows.
Beyond revenue gain from the service, Post believes that higher use of Amazon’s network will gradually boost the operating leverage over time.
Is Amazon a Buy or Hold Stock?
Across Wall Street, analysts continue to deem Amazon’s shares as a Strong Buy based on their consensus rating. This breaks down to 45 Buys and two Holds issued over the past three months.
In addition, the average AMZN price target of $315.09 suggests approximately 16% upside.
