Amazon.com (AMZN) - Get Report on Friday received a price-target boost from analysts at Citi, who raised their one-year-out expectation for the stock to a Wall Street high of $3,550 from $2,700 amid what they see as ongoing, pandemic-driven, upside dominance in online sales.
In a note to clients, Citi analyst Jason Bazinet said that while his team expects total U.S. retail sales “to be only 1% above 2019 levels” in 2022, “e-commerce is expected to increase 43%” while brick-and-mortar retail falls 4%.”
That spells more upside for the likes of Amazon, which Bazinet expects will comprise 43% of the domestic e-commerce market by 2022, up from 38% in 2019, and nearly 7% of total U.S. retail sales by 2022, up from 4% last year.
The rising market share represents “a powerful, long-term tailwind,” he said, adding that his group is maintaining its buy rating on Amazon stock.
Shares of Amazon were up 0.74% at $3,206.12 in trading on Friday.
The coronavirus pandemic has produced a decisive fissure between online and brick-and-mortar retailers, particularly in goods and apparel, with the likes of Brooks Brothers, J.Crew, J.C. Penney and Neiman Marcus seeking bankruptcy protection even as their online sales continue to generate revenue.
Amazon in particular has emerged a clear winner through Covid-19, with the retail and cloud giant’s stock gaining nearly 90% since the mid-March lows. Amazon now sports a market cap of more than $1.5 trillion, topped only by Apple (AAPL) - Get Report and Microsoft (MSFT) - Get Report.
Along with its rockstar performance, the company has also received other analyst upgrades, including a pair last month from Deutsche Bank and SunTrust.
Deutsche Bank analyst Lloyd Walmsley shared in a separate note last Friday that Amazon is the "clear winner" from Covid-19 disruptions, and that consumers are likely to continue shopping on Amazon at elevated levels even after lockdowns ease.
Walmsley lifted his one-year target to $3,333 from $2,750 following a Deutsche Bank survey that found consumers rated Amazon higher than its competitors in e-commerce, including eBay (EBAY) - Get Report, Walmart (WMT) - Get Report and Target (TGT) - Get Report.