In a report released today, John Blackledge from TD Cowen maintained a Buy rating on Amazon, with a price target of $255.00.
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John Blackledge has given his Buy rating due to a combination of factors including the strong position of Amazon Web Services (AWS) in the GenAI market. According to a survey of North American IT decision-makers, a significant portion of firms are already hosting their GenAI solutions on AWS, with expectations for increased spending on GenAI services in the coming years. This anticipated growth in GenAI cloud spending is expected to drive AWS revenue growth, with a projected compound annual growth rate of 20% from 2025 to 2030.
Furthermore, Blackledge’s analysis suggests that AWS’s capital expenditure is well-positioned to support future GenAI deployment, as the majority of firms plan to increase their GenAI spending significantly. The forecasted growth in AWS revenues and operating income, along with a favorable Sum of the Parts (SOTP) analysis, supports a market cap valuation higher than Amazon’s current market cap. These factors collectively underpin Blackledge’s Buy rating for Amazon’s stock.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 14.4% and a 61.91% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Match Group, and Meta Platforms.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $250.00 price target.