Analysts at Jefferies are optimistic about Amazon (NASDAQ:AMZN) and have raised their price target to $235 per share from $225. They believe that strong growth in Amazon Web Services (AWS) and the advertising sector will drive the stock’s value. Jefferies notes that 71% of Amazon’s total enterprise value comes from AWS and advertising, indicating the significant contribution of these high-margin segments. They expect AWS revenue growth to accelerate and forecast steady growth in the advertising sector, with potential additional sales from Prime Video.
Furthermore, Jefferies highlights the potential in Amazon’s core retail business, emphasizing greater efficiency leading to higher margins. They also point out that Amazon shares are attractively valued compared to historical averages.
In a separate report, analysts at Needham & Company reaffirmed their Buy rating and $205 price target on Amazon after a meeting with a former Amazon advertising salesperson. They highlighted positive factors such as changes in media metrics, the company’s advertising strategies, and data synergies with AWS.
Overall, both Jefferies and Needham & Company are bullish on Amazon’s future prospects, citing growth in AWS, advertising, and the core retail business as key drivers of the stock’s value. They believe that Amazon’s attractive valuation and potential for further expansion in these high-growth segments make it a strong investment opportunity.
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https://www.investing.com/news/stock-market-news/jefferies-hikes-amazon-stock-target-on-strong-aws-and-advertising-trends-432SI-3511686
