Justin Post, an analyst from Bank of America Securities, reiterated the Buy rating on Amazon (AMZN – Research Report). The associated price target was raised to $248.00.
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Justin Post has given his Buy rating due to a combination of factors including Amazon’s advancements in robotics and AI, which are expected to significantly reduce costs and increase efficiency. The company has integrated over 750,000 robots into its operations, enhancing order accuracy and warehouse efficiency. This strategic move is anticipated to strengthen Amazon’s competitive edge by lowering labor dependency and improving delivery speeds.
Furthermore, Amazon’s ongoing investments in autonomous technologies, such as drone deliveries and advanced fulfillment centers, are projected to yield substantial cost savings. These innovations are expected to contribute to a notable improvement in Amazon’s profit margins, with long-term retail margins potentially reaching 11%. The recent expansion in SaaS and retail sector valuations also supports the increased price objective of $248, reinforcing the Buy recommendation.
According to TipRanks, Post is a top 100 analyst with an average return of 22.5% and a 67.88% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C.
In another report released on May 27, Evercore ISI also maintained a Buy rating on the stock with a $260.00 price target.
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