Morgan Stanley analyst Brian Nowak has maintained their bullish stance on AMZN stock, giving a Buy rating on September 8.
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Brian Nowak has given his Buy rating due to a combination of factors related to Amazon’s strategic expansion into the fresh and perishable grocery market. This move is seen as a significant opportunity for Amazon to capture a portion of the $600 billion U.S. consumer spend in this category, which could lead to substantial growth in the company’s U.S. Gross Merchandise Volume (GMV). By capturing even a small percentage of this market, Amazon could see a notable increase in its GMV growth rate.
Moreover, Nowak highlights that Amazon has already established the necessary logistics and fulfillment infrastructure to support this expansion, which positions the company well to leverage its network for efficient delivery of fresh groceries. This infrastructure, combined with higher margins on fresh merchandise and the potential for profitable basket sizes, suggests that Amazon’s foray into this market could not only drive growth but also enhance profitability, providing a compelling case for the Buy rating.
Nowak covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Nowak has an average return of 8.5% and a 62.90% success rate on recommended stocks.
In another report released on September 8, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $280.00 price target.