Justin Post, an analyst from Bank of America Securities, maintained the Buy rating on Amazon. The associated price target remains the same with $303.00.
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Justin Post has given his Buy rating due to a combination of factors including Amazon’s strategic advancements in ultrafast delivery and grocery services. The introduction of Amazon Now in select urban areas like Seattle and Philadelphia is a significant step towards enhancing customer convenience with deliveries in 30 minutes or less. This initiative is expected to drive customer frequency and loyalty, particularly among Prime members, as it complements Amazon’s existing same-day grocery capabilities.
Furthermore, while the ultrafast delivery service is still in its early stages and may not be immediately profitable, it positions Amazon to potentially surpass the convenience of in-store shopping. The anticipated benefits extend beyond immediate revenue, as increased activity in grocery shopping is likely to boost Amazon’s higher-margin marketplace and advertising revenues. Despite the experimental nature of Amazon Now, the overall outlook for Amazon remains positive, with expectations of continued margin expansion driven by improved inventory management and robotics. This strategic positioning underpins the Buy rating, reflecting confidence in Amazon’s growth trajectory.
According to TipRanks, Post is a top 100 analyst with an average return of 23.5% and a 66.67% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Alphabet Class C, and Meta Platforms.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $295.00 price target.