Ronald Josey, an analyst from Citi, reiterated the Buy rating on Amazon. The associated price target remains the same with $270.00.
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Ronald Josey has given his Buy rating due to a combination of factors related to Amazon’s strategic expansion in the perishable grocery sector. The company’s move to enhance its Same-Day Perishable Groceries service is seen as a significant step, leveraging its extensive fulfillment centers to improve logistics and delivery efficiency. Although the standalone economics of grocery orders might currently be negative, the potential for larger orders that include essentials and general merchandise, along with advertising opportunities, is expected to offset these challenges.
Furthermore, the investments in perishable groceries are anticipated to increase Amazon’s market share as the cost to serve continues to decrease. The analyst also sees positive implications for other marketplaces like Instacart, as Amazon’s expansion could encourage more retailers to invest in online channels. Overall, Amazon remains a top pick for Ronald Josey, who maintains a Buy rating with a target price of $270, reflecting confidence in the company’s growth prospects in the grocery sector.
In another report released yesterday, Citizens JMP also maintained a Buy rating on the stock with a $285.00 price target.