Amazon (AMZN) stock is back in the spotlight after Jefferies’ Top analyst, Brent Thill, raised his price target to $255 from $250, while keeping a Buy rating. The new target implies a nearly 16% upside potential from current levels.
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In his latest note dated July 1, the five-star analyst said that Amazon remains well-positioned, even as consumers grow more cautious about rising prices and tariffs. It is worth noting that Thill ranks 95 out of more than 9,680 analysts tracked by TipRanks. He has a success rate of 67%, with an average return per rating of 15.4% over a one-year timeframe.
Why Thill Remains Confident
Thill highlights that despite worries about rising prices due to tariffs, most Amazon shoppers are sticking with the platform. According to the survey, around 47% of respondents said their spending on Amazon hasn’t changed, while 15% are spending more. Only 3% said they’ve stopped shopping on the platform altogether.
However, there are signs that some shoppers are growing cautious. About 31% of respondents said they’re spending less, and 34% reported shopping less often. Thill added that if inflation rises further, nearly half of consumers would rather cut back on Amazon purchases than switch to other retailers.
Amazon Prime Still Leads the Pack
Amazon’s Prime membership continues to stand out. In the Jefferies survey, 73% of respondents said they’re Prime members, compared to just 26% for Walmart+ (WMT) and 22% for Target Circle (TGT).
Looking ahead, Thill expects Amazon’s Prime Day event in July to boost sales and attract new members, especially younger users. The four-day sale is set to run from July 8 to 11, which could make it more impactful than in past years.
Bottom Line
Thill believes Amazon is still ahead of its competitors when it comes to pricing, delivery, and product variety. While shoppers may be cautious in the short term, Amazon’s strong brand and Prime loyalty give it staying power. That’s why Jefferies still sees about 16% upside in the stock.
Is Amazon Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Amazon is Strong Buy, based on 47 Buy and one Hold rating over the past three months. With that comes an average AMZN stock price target of $243.32, representing a potential 10.22% upside for the shares.
