(AMZN) PT Raised to $2,085 at Oppenheimer on AWS Model Update to Add AI

April 1, 2019 8:37 AM EDT
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Price: $3,626.39 -1.98%

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    55 Buy, 3 Hold, 1 Sell

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    Up: 13 | Down: 27 | New: 42
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(Updated - April 1, 2019 9:07 AM EDT)

Oppenheimer analyst Jason Helfstein raised the price target on (NASDAQ: AMZN) to $2,085.00 (from $1,975.00) while maintaining a Outperform rating after a AWS model update to reflect their views on artificial intelligence and its impact on cloud adoption.

Helfstein said AWS is well positioned as AI leads productivity improvements, forcing faster enterprise cloud adoption.

The analyst said the benefit for AWS is twofold:

1) most organizations will gain access to AI through their cloud platform, driving cloud adoption;

2) AI applications and services are high-margin recurring revenues that will help lock in enterprise providers.

The analyst adds that with each new successful AWS "vertical," customers, regulators and investors will question whether AMZN should spin out AWS.

"We view this as possible when AMZN matures its advertising and video businesses," he said.

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