Amazon.com (AMZN) PT Raised to $295 at Benchmark
Benchmark analyst Daniel Kurnos raised the price target on Amazon.com (NASDAQ: AMZN) to $295.00 (from $260.00) while maintaining a Buy rating.
The analyst commented, "It has certainly felt like a war with this stock, but while we are not even in the same stratosphere as the master military strategist and general, we did say in our Amazon (AMZN: Buy, PT from $260 to $295) is a Must Ad(d) preview that “having covered the stock for almost two decades, we get that the name tends to be a difficult own during investment periods like we are seeing now with DC buildouts and satellite launches pushing FCF into the red. However, even with consensus getting a bit peppier ahead of the all-important holiday quarter, we suspect the tide will turn sooner rather than later, with AWS growth reaccelerating and operating income margins resuming their upward trajectory.” We were only wrong because we thought AWS would beat in 3Q and accelerate to 20% in 4Q instead of reaching 20% in 3Q. This just felt like one of the handful of extraordinary moments with this storied megacap, and while they still do not have that marquee AI contract announcement, we have to imagine that the sentiment pendulum will have swung back in the other direction for the next few quarters."