Amazon.com (AMZN) - Get Amazon.com Inc. Report shares rose Monday after RBC Capital Markets and Baird raised their share-price target for the dominant online retailer amid strong consumer demand during the coronavirus pandemic.
RBC analysts, led by Mark Mahaney, boosted their share-price target from $2,700 to $3,300 and maintained their outperform rating.
Amazon came out looking good in RBC’s U.S. online shopping survey. “Covid-specific results clearly support the idea that online retail is a structural winner from the Covid crisis,” the analysts wrote in a commentary.
“And AMZN-specific results clearly support the idea that AMZN is likely the best global play off of online retail.”
The survey results and industry data suggest that “adoption of online shopping has
accelerated materially, and we view Amazon, Walmart (WMT) - Get Walmart Inc. Report, Etsy (ETSY) - Get Etsy Inc. Report, and eBay (EBAY) - Get eBay Inc. Report as beneficiaries of this secular shift,” the analysts said.
The survey showed that 64% of Amazon customers make at least two purchases per month, up from 54% a year earlier.
Meanwhile, Baird analysts, led by Colin Sebastian, lifted their share price target from $2,550 to $2,750 and kept their rating at outperform.
“Following generally strong e-commerce data through May, as well as positive Amazon-specific checks, we are increasing our Q2 revenue and operating income estimates above consensus,” the analysts wrote in a commentary.
“Amazon has reopened warehouses to third-party inventory, resumed selling products in non-essential categories, and in late April, restarted advertising on some large platforms such as Facebook,” Baird wrote.
Amazon shares stood at $2,502.98 in pre-market trading, up 0.80%. The stock has soared 31% over the last three months.