Mizuho Securities analyst Lloyd Walmsley has reiterated their bullish stance on AMZN stock, giving a Buy rating today.
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Trade AMZN with leverageLloyd Walmsley has given his Buy rating due to a combination of factors tied primarily to Amazon’s strengthening fundamentals in AWS and retail. He highlights that AWS has reaccelerated to mid‑20% year-over-year growth in constant currency, outpacing expectations and peers, supported by a sharply improving backlog and large-scale capacity expansions that should support further growth and better returns on heavy capital investment. He also notes that Amazon’s overall revenue and operating income exceeded consensus, with both North America and International retail segments delivering solid double‑digit growth and margins that were better than the market had modeled.
Walmsley further points to record profitability in North America retail, where operating margins approached 10% (excluding one‑offs) and fulfillment cost growth remained below paid unit growth, suggesting continued leverage and efficiency gains. Advertising growth in the low‑20% range, comparable to leading digital ad platforms, adds another high‑margin growth driver. Although he acknowledges concerns that AWS’s margin and backlog progress lag the sheer scale of capex and trail some competitors, he ultimately concludes that Amazon’s accelerating cloud demand, robust retail profitability, and durable advertising momentum justify an Outperform/Buy rating and a $315 price target based on a blended valuation approach.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $280.00 price target.
AMZN’s price has also changed slightly for the past six months – from $213.750 to $222.690, which is a 4.18% increase.