Amazon (AMZN) stock edged higher today after BofA Securities analyst Justin Post raised his price target to $265 (14.3% upside), up from $248, while maintaining a Buy rating. The move comes just days before the company’s Q2 earnings report on July 31. Importantly, the Top analyst also predicts a revenue and EPS beat for AMZN in Q2.
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Post cited strong U.S. retail data, favorable foreign exchange trends, and rising demand for cloud services via Amazon Web Services (AWS) as key drivers.
Analyst Bumps Q2 Estimates for AMZN
The analyst now forecasts Q2 revenue of $164 billion, beating Wall Street’s consensus of $162.10 billion. He also expects Q2 profit of $17.8 billion, topping both the Street’s $17 billion estimate and the high end of Amazon’s own guidance at $17.5 billion.
Post expects Q2 retail results to be strong, backed by internal credit card data and longer Prime Day sales. He also sees AWS gaining momentum, with a large backlog and more cloud spending likely to boost growth later in 2025.
Moreover, the analyst sees Amazon’s North America retail segment benefiting from strong consumer spending. Also, international sales could get a boost from currency tailwinds.
Looking ahead, Post expects Amazon to guide Q3 revenue between $169 billion and $174 billion, with AWS growth accelerating in the second half of the year thanks to higher infrastructure investment and AI demand.
BofA Analyst Sees Strong Upside
At the same time, Post believes AMZN stock has strong upside potential. He pointed out that Amazon’s current valuation, 13.4x projected 2026 EV/EBITDA, is below its 10-year average of 16.5x, suggesting room for multiple expansion.
With a favorable valuation, slightly higher earnings estimates, and strong comparisons to SaaS and advertising peers, Post sees room for more upside.
Is Amazon a Buy, Hold, or Sell?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 44 Buys and one Hold assigned in the last three months. At $258.15, the average Amazon stock price target implies an 11.23% upside potential.
