Analyst Justin Post from Bank of America Securities maintained a Buy rating on Amazon (AMZN – Research Report) and keeping the price target at $248.00.
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Justin Post has given his Buy rating due to a combination of factors including Amazon’s strategic extension of its Prime Day event. This year, the event will last 96 hours, doubling the duration from last year, and is expected to generate significant growth in gross merchandise value (GMV), with estimates reaching over $21 billion. This extension not only highlights Amazon’s enhanced logistics capabilities but also suggests that inventory availability is robust, despite external challenges such as tariffs.
Additionally, Amazon’s integration of AI tools to enhance customer experience and drive sales is a key factor in the positive outlook. AI-powered features like personalized deal recommendations and shopping assistants are expected to increase retail transparency and benefit Amazon’s cost structure. Furthermore, the extended Prime Day is anticipated to strengthen Amazon’s brand and boost Prime membership sign-ups and retention, despite increased competition from other retailers. These strategic moves underpin the Buy rating, although there is a noted risk that the extensive promotions could impact third-quarter margins.
In another report released yesterday, Bernstein also assigned a Buy rating to the stock with a $235.00 price target.