Analysts predict further growth for Amazon, with both Jefferies and MoffettNathanson reiterating their optimistic views of the stock. They maintain that Amazon’s advertising revenue, cost optimization, and gross margin expansion will contribute to its success. Jefferies highlights Amazon’s AWS growth and operating income as key drivers despite a slight deceleration in net sales in Q1.
MoffettNathanson, which has a Buy rating and a $230 price target on Amazon, believes that the company’s 1P business is poised for a recovery from the inflationary pressures and retail inventory correction experienced in the past year. This recovery is expected to drive a $2 billion improvement in gross profit in 2024.
Jefferies also holds a Buy rating with a $225 price target, citing the company’s attractive valuation. They expect Amazon to benefit from a multi-year margin expansion opportunity as it continues to optimize its operations and leverage its strong market position.
