Wall Street investment bank Oppenheimer (OPY) has raised its 18-month price target on Amazon (AMZN) stock to $305 from $290, citing continued strong growth in the Amazon Web Services (AWS) cloud-computing unit.
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Analyst Jason Helfstein reiterated a Buy-equivalent outperform rating on AMZN stock, arguing that he expects much stronger AWS revenue than the market currently anticipates over the next year and leading into 2027.
According to Helfstein, AWS is “planning to double capacity through 2027 after having doubled since 2022.” Oppenheimer said it analyzed the historical performance of Amazon’s cloud-computing group and found that the company has generated an additional $3 billion in incremental revenue in each of the past three years, making AWS a big driver of Amazon’s overall growth.
Amazon’s Growth Opportunity
In a note to clients, Helfstein said that he sees “14%/22% upside to Street 2026/2027 AWS revenue, including 3% upside in 4Q.” The analyst said the growth opportunity ahead for Amazon justifies an upward revision to the price target, adding that AWS’s multi-year expansion could continue to be the primary driver of Amazon’s valuation for years to come.
The note also highlights the upcoming AWS event that begins on Dec. 1, which Oppenheimer says is expected to yield new and potentially exciting announcements, possibly involving artificial intelligence (AI). Beyond cloud, Oppenheimer notes a more subdued outlook for Amazon’s retail business due to tariff impacts and a pullback in consumer spending.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 44 Wall Street analysts. That rating is based on 43 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $295.23 implies 26.80% upside from current levels.
