In a report released today, Brian Nowak from Morgan Stanley maintained a Buy rating on Amazon, with a price target of $300.00.
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Brian Nowak has given his Buy rating due to a combination of factors that highlight Amazon’s strong performance and future potential. The company’s retail segment has shown impressive growth, with second-quarter earnings exceeding expectations. This was driven by better-than-anticipated retail revenue and improved cost efficiency in fulfillment and shipping, which contributed to higher profit margins. Additionally, Amazon’s advertising business has accelerated, further enhancing its profitability.
In the Amazon Web Services (AWS) segment, although there was no confirmed expectation for immediate acceleration, the growth in revenue was still better than expected. Nowak anticipates that AWS will experience faster growth in the future, supported by increasing demand for both GenAI and non-GenAI workloads. He believes that Amazon is well-positioned to benefit from advancements in robotics and automation, which will enhance its free cash flow and transaction durability. Overall, these factors contribute to a positive outlook for Amazon’s long-term earnings potential, justifying the Buy rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $255.00 price target.