Bank of America (BAC) analyst Justin Post recently reiterated his Buy rating on tech giant Amazon (AMZN) with a price target of $310. The five-star analyst believes that Amazon’s cloud business (AWS) is showing stronger momentum as it benefits from AI demand, stronger profitability, and a growing backlog. Post also viewed it as positive that Amazon did not raise its full-year capital spending outlook, since it suggests that recent AI deals with companies like Anthropic and OpenAI may already be included in the company’s investment plans.
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200% short exposure to AMZN with AMZOIn addition, the analyst pointed to Amazon’s reaccelerating retail segment and the upcoming June Prime Day as reasons to stay positive. In his view, Amazon is improving in several areas at once instead of depending on one part of the business. He also highlighted Amazon’s use of AI in shopping, including Alexa for Shopping and Rufus, which could make the shopping experience better and help drive more sales over time.
As a result, Post sees Amazon as a stronger AI and cloud story after its latest results. AWS growth appears to be improving, AI demand is building, and Amazon’s retail tools are getting better. Just as importantly, Amazon did not raise its capex guidance, which helped ease some concerns that the company would need to spend even more to chase AI growth.
Is Amazon a Buy, Sell, or Hold?
Overall, analysts have a Strong Buy consensus rating on AMZN stock based on 45 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $319 per share implies 19% upside potential.
