Bernstein Upgrades Amazon.com (AMZN) to Outperform Following Selloff

(Updated - September 22, 2020 4:21 AM EDT)

Bernstein analyst Mark Shmulik upgraded Amazon.com (NASDAQ: AMZN) from Market Perform to Outperform with a price target of $3,400 following the recent sell-off and strong growth trends. Shmulik notes Amazon is a primary beneficiary as COVID has pulled forward secular trends.

The analyst comments "The stock has sold off -16% in the last couple of weeks, creating an attractive entry point. All signs point to Amazon growing from a new level, increasing fulfillment capacity by 50% Y/Y this year through 100+ new facilities and plans to hire an additional 100K workers. The recent announcement of 1K neighborhood hubs (stores?) aligns with our original thesis on an omni channel end state. Amazon is well positioned to benefit from the similar permanent pull forward in the hyper-scale cloud market and we continue to be the bull on the street for Amazon's ad business."

The firm's thesis highlights:

• In a fragmented eCommerce market, AMZN is the best positioned aggregator
• Business momentum remains strong – 4Q could be a catalyst
• Signs of momentum against our original thesis of accelerating eCommerce
• Digital advertising firing on all cylinders
• Cloud should re-accelerate on a partial re-open

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $2960.47 yesterday.

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