Analyst John Blackledge from TD Cowen maintained a Buy rating on Amazon and keeping the price target at $300.00.
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Trade AMZN with leverageJohn Blackledge has given his Buy rating due to a combination of factors tied primarily to Amazon Web Services’ accelerating growth outlook. He expects AWS revenue to reaccelerate meaningfully as generative AI demand ramps, with growth exiting 2026 in the low‑30% range year over year and stepping up to the mid‑30% range in 2027, notably ahead of current market expectations.
He also argues that elevated capital spending to expand AWS’s gigawatt-scale infrastructure should generate improving returns, as incremental revenue per dollar of incremental capex rises and approaches historical levels by 2028. In his view, AWS’s AI-driven revenue mix, manageable depreciation burden, and mid‑30% operating margin profile through 2026–2028 support a compelling long‑term profit trajectory that justifies a positive stance on Amazon’s shares.
In another report released today, Barclays also maintained a Buy rating on the stock with a $300.00 price target.