William Blair analyst Dylan Carden has maintained their bullish stance on AMZN stock, giving a Buy rating today.
Dylan Carden has given his Buy rating due to a combination of factors that reflect Amazon’s potential for margin improvement and resilience in the face of external challenges. The analysis forecasts Amazon’s operating margin to reach around 13% by 2026, supported by a detailed examination of the company’s profit and loss statements. A significant factor in this forecast is Amazon Web Services (AWS), where operating margins are expected to stabilize in the low-30% range, despite recent volatility and investment spending.
Carden also acknowledges the potential risks associated with tariffs on Chinese goods, which could impact Amazon’s retail business due to its reliance on Chinese producers and sellers. However, he suggests that Amazon is better positioned than most companies to handle these challenges. The company’s retail operations are crucial to its high-margin services like Prime and advertising, which are integral to its long-term margin strategy. This interconnected ecosystem supports the Buy rating, as it highlights Amazon’s ability to maintain profitability and growth even amidst potential disruptions.
In another report released today, Citi also reiterated a Buy rating on the stock with a $225.00 price target.