Amazon (AMZN) is the stock that keeps on giving.
While share price is down from its September 52-week high, it’s still up big for the year as the company continues to post surging numbers. The company wears many hats, including the leader e-commerce retail and cloud-computing, and most recently as an advertising powerhouse and slowly through its burgeoning logistics and delivery network.
Davidson analyst Tom Forte is a big fan of Amazon’s retail business: “While much of the focus for Amazon’s stock has been on the cloud computing business, given it is the most profitable and also fastest growing segment, the company’s retail business remains vibrant and continues to reach new milestones.” He points to a record-breaking holiday season and is “encouraged by the strength and growth of Prime, with tens of millions of new users added and one billion orders shipped.”
Forte is also impressed with Amazon’s continued play into consumer technology, with millions of Amazon devices sold during the holiday season. He says Alexa is “one of the most underappreciated products in Amazon’s portfolio” and the voice will “play an important role in the future of retail.” The analyst says shopping through Alexa is increasing “more than three-fold compared to last year.”
Amazon announced it would lower fees from third-party sellers, which Forte says should “make Amazon’s platform even more competitive against other marketplaces,” including “attracting more high-quality sellers and improving the overall product offerings to customers.” He says that, along with AWS and advertising, third-party retail is where Amazon “will draw from for future price appreciation and profit generation.”
All in all, Forte is very bullish on Amazon with a Buy rating and $2,450 price target, which implies over 60% upside for the stock. (To watch Forte’s track record, click here)
How does Forte’s bullish stance weigh in against the Street? It appears the analyst is not the only one enthusiastic on the e-commerce giant’s prospects, with TipRanks analytics demonstrating AMZN as a Strong Buy. Out of 38 analysts polled in the last 3 months, 36 are bullish on the stock while 2 remain sidelined. With a return potential of nearly 47%, the stock’s consensus target price stands at $2,150. (See AMZN’s price targets and analyst ratings on TipRanks).