Amazon.com (AMZN) PT Raised to 'Street High' $3,300 at RBC Capital; 'A Structural Winner'

RBC Capital analyst Mark Mahaney raised the price target on Amazon.com (NASDAQ: AMZN) to a 'Street High' $3,300 (from $2,700) while maintaining an Outperform rating following their 8th annual U.S. Online Shopping Survey, saying it will be a 'Structural Winner'.

"COVID-specific results clearly support the idea that Online Retail is a Structural Winner from the COVID Crisis," Mahaney commented. "And AMZN-specific results clearly support the idea that AMZN is likely the best global play off of Online Retail. Here are the Key Takes:

COVID-19 Is Causing An Accelerated Shift To eCommerce: "Our survey results and industry data suggest that adoption of Online Shopping has accelerated materially, and we view Amazon, Walmart, Etsy, and eBay as beneficiaries of this secular shift..."

Amazon Is A Structural Winner: "Frequency & Spend Trends from our survey results showed significant improvement. 64% (vs. 54% in ’19) of Amazon customers make at least 2-3 purchases per month. And 45% (vs. 36% in ’19) of respondents said they spent $200+ over the last 90 days. Most importantly, Prime penetration surged to 67% vs. 59% in 2019..."

One Clear AMZN Negative - Satisfaction: Our survey results showed declining and Record Low satisfaction levels across Amazon customers. 64% (vs. 73% last year) of Amazon customers describe themselves as “Extremely” or “Very Satisfied” vs. a RH 11% who describe themselves as “Slightly” or “Not At All Satisfied"..."

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