Amazon Analysts Raise Price Targets After Stellar Q2 Results

Consumers flocked to Amazon for shopping, as the coronavirus pandemic stranded them at home. And businesses increasingly used the cloud.
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Amazon.com  (AMZN) - Get Report shares rose Friday as analysts lifted their share-price targets for the online retail colossus after it reported blowout second-quarter earnings on Thursday after the close.

Amazon shares recently traded at $3,183.47, up 4.30%. The stock has soared 65% year to date through Thursday, topping the Nasdaq Composite’s 18% gain.

Consumers flocked to the platform in droves as the coronavirus pandemic stranded them at home, and enterprises increasingly used Amazon's cloud computing services to run their businesses. 

Goldman Sachs analyst Heath Terry boosted his share-price target to the highest level among major analysts, Bloomberg reported -- $4,200 from $3,800. He maintained his buy rating.

“We believe that the long term steepening of Amazon’s growth curve, driven by the acceleration of consumer adoption of e-commerce and enterprise adoption in cloud computing, enabled by the company’s investments in fulfillment and infrastructure,” Terry wrote in a note. “The associated high returns are likely to drive share price outperformance well beyond the current crisis.”

J.P. Morgan’s Doug Anmuth hiked his share-price target to $4,050 from $3,000, keeping his overweight rating. Like Terry, Anmuth is impressed both with Amazon’s e-commerce business and its cloud segment.

“We believe Amazon is well positioned as the market leader in e-commerce and public cloud, where the secular shifts remain early,” Anmuth wrote in a note. “U.S. e-commerce represents about 20% of adjusted retail sales, and we estimate about 15% of workloads are in the cloud today.

Morgan Stanley’s Brian Nowak, lifted his share-price target to $3,750 from $3,450 and kept his overweight rating. Cowen’s John Blackledge raised his share-price target to $4,000 from $3,700 and maintained his overweight rating.

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