Amazon will show continued strength no matter how the next few months play out, according to Deutsche Bank.
The retail and cloud giant received a pair of upgrades on Friday from analysts at Deutsche Bank and SunTrust. Deutsche Bank raised its price target for Amazon (AMZN) - Get Amazon.com, Inc. Report shares to $3,333 from $2,750 on high expectations throughout COVID-19.
Shares of Amazon were down 0.5% on Friday to $2,741.40.
Deutsche Bank's Lloyd Walmsley wrote in a note 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.
The bank found in a survey that consumers rated Amazon higher than its competitors in e-commerce, including eBay (EBAY) - Get eBay Inc. Report, Walmart (WMT) - Get Walmart Inc. Report and Target (TGT) - Get Target Corporation Report. Thanks to investments in its e-commerce infrastructure, Amazon is also well prepared to handle spikes in demand, Walmsley wrote.
"We see shares well positioned for all conditions," he wrote.
On average, analysts polled by FactSet are expecting Amazon's overall revenue to surge in the second quarter, with the consensus at $80.7 billion for the quarter ending June 30, up from $63.4 billion in the year-ago quarter. Amazon's core e-commerce business, inclusive of its online stores and third-party seller services, comprises the majority of its overall revenue.
The AWS revenue outlook isn't as strong in the near term, wrote Walmsley, but the rapid adoption of cloud services during COVID-19 will expand the long-term growth potential of Amazon's cloud division.
Meanwhile, analysts at SunTrust raised its price target for Amazon shares to $3,400 per share from $2,700 on a survey suggesting that COVID-19 has accelerated adoption of e-commerce, with much of that adoption likely to become permanent.
Don't get your hopes up for huge profits this quarter, though: Amazon told investors it was spending on the order of $4 billion on its COVID-19 response, and with infections increasing, that's unlikely to taper off anytime soon.
Amazon shares are up 44% year to date.