Bank of America Securities analyst Justin Post maintained a Buy rating on Amazon yesterday and set a price target of $275.00.
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Forget margin or options. Here's how the pros trade AMZNJustin Post has given his Buy rating due to a combination of factors tied to accelerating AI-driven growth at AWS and improving capital returns. He highlights Anthropic’s explosive revenue ramp and increasing use of its Claude models as evidence of strong, broad-based enterprise demand for advanced AI services that increasingly rely on hyperscale cloud infrastructure.
Post argues that, if a meaningful portion of Anthropic’s expanding workloads and model-training spend flows through AWS, it could materially boost Amazon’s cloud revenue on a quarterly basis, beyond current expectations. Combined with Amazon’s plans to significantly expand AWS power capacity and his view that incremental capex will earn attractive returns as AI demand scales, he sees upside to Street forecasts for AWS and reinforces a Buy recommendation on AMZN.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Post has an average return of 21.4% and a 63.71% success rate on recommended stocks.
In another report released on March 1, Morgan Stanley also maintained a Buy rating on the stock with a $300.00 price target.