Analyst Justin Post of Bank of America Securities reiterated a Buy rating on Amazon, boosting the price target to $272.00.
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Justin Post has given his Buy rating due to a combination of factors that highlight Amazon’s strong performance and potential for future growth. The company’s retail segment showed impressive results, surpassing expectations with significant revenue and profit figures, driven by an acceleration in unit growth. This positive performance in retail was complemented by a solid Prime Day, which bolstered Amazon’s top-line guidance beyond market predictions.
Despite some challenges faced by Amazon Web Services (AWS), such as capacity constraints and competitive pressures, AWS still managed to achieve notable revenue growth. Justin Post anticipates further acceleration in AWS, supported by increased capital expenditure and backlog growth. Additionally, the early stages of the AI Cloud market present opportunities for AWS to expand its influence. These factors, along with Amazon’s strategic improvements in speed and efficiency, underpin the Buy rating, with a price objective set at $272.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $240.00 price target.