Analyst Brent Thill of Jefferies maintained a Buy rating on Amazon (AMZN – Research Report), retaining the price target of $240.00.
Brent Thill has given his Buy rating due to a combination of factors that highlight Amazon’s strong performance and potential for growth. One of the key reasons is the acceleration in AWS backlog, which increased by 6 percentage points to 20%, despite a slight deceleration in revenue growth. This indicates a strong demand for AWS services, coupled with record operating margins of 39.5%, showcasing Amazon’s ability to manage capacity constraints effectively.
Additionally, Amazon’s retail segment is well-positioned to handle tariff challenges better than competitors, thanks to its low prices and extensive product range. The company’s operating income has consistently exceeded expectations, driven by CEO Andy Jassy’s focus on operational discipline and cost efficiency. Furthermore, Amazon’s advertising revenue growth remains robust, providing further support for the positive outlook. The stock’s valuation, trading at 11 times next twelve months EV/EBITDA, is near its 10-year trough, suggesting an attractive entry point for investors.
According to TipRanks, Thill is a 4-star analyst with an average return of 5.9% and a 50.30% success rate. Thill covers the Technology sector, focusing on stocks such as Microsoft, Adobe, and Intuit.
In another report released today, Pivotal Research also reiterated a Buy rating on the stock with a $260.00 price target.