BMO Capital says Amazon.com channel checks support AWS acceleration

BMO Capital analyst Brian Pitz keeps an Outperform rating and $304 price target on Amazon.com (AMZN), saying the firm’s channel checks continue to support AWS’s growth acceleration, though competition and capacity constraints still keep a lid on upside potential. Retail sales remain healthy, but consumer confidence keeps moving in the opposite direction, indicating an unsustainable macro, the analyst tells investors in a research note. BMO adds however that the ongoing roll-out of Same-Day buildings, with lower CapEx than fulfillment centers, while improving the customer experience, will unlock Retail free cash flow this year and beyond.