Amazon Web Services (AWS) recorded its fastest sales growth in almost four years, prompting analyst Justin Patterson from KeyBanc to raise the price target for Amazon.com, Inc. (NASDAQ: AMZN). The new 12-month price target is set at $335, an increase from $325, indicating a potential upside of 30.8%.
Patterson reinforced a Buy rating on AMZN stock in a note to clients on July 16. He emphasized that strong retail trends and the growth of AWS sales are key in establishing Amazon as a leading player in the e-commerce sector.
Improved Revenue Forecasts
Amidst his updated forecast, Patterson revealed that Wall Street's estimates are currently lagging behind Amazon's projected growth trajectory. He anticipates a revenue increase and earnings per share (EPS) figures for 2028 that are approximately 2% and 3% higher than the consensus forecast, respectively. The analyst has also improved his revenue expectations for 2026 and 2027, primarily inspired by solid AWS growth, projecting a 31% year-over-year increase for these years.
Market Sentiment and Performance
As the earnings call scheduled for July 30 approaches, Wall Street analysts overwhelmingly support AMZN stock. Recently, a survey conducted by TipRanks revealed that among 46 analysts, the average rating assigned to AMZN is a Strong Buy. Their collective 12-month average price target stands at $318.98, suggesting a potential upside of 24.81%. Currently, Amazon shares are trading at approximately $255.57 an increase of over 14% in the last year. If this momentum, particularly influenced by advancements in AI, continues, the set price targets may be attainable.
This material is for informational purposes only and should not be considered financial advice.
