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Amazon Affirmed Outperform; Cowen Sees Millennial, Gen-Z Strength

'Our survey data [of Generation Z and millennials] suggests that Amazon continues to improve,' said Cowen analyst John Blackledge.
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Cowen reiterated its outperform rating on retail/technology colossus Amazon  (AMZN) - Get Amazon.com, Inc. Report, citing the strong fundamentals of its retail business as they relate to young customers.

Cowen affirmed its price target for the company at $4,300.

Amazon stock recently traded at $3,324, up 0.73%. The stock has slid 10% in the last three months on valuation concerns.

“Our survey data [of Generation Z and millennials] suggests that Amazon continues to improve the number of touch points along a consumer's path to purchase in the apparel and accessories vertical,” said Cowen analyst John Blackledge.

“AMZN is now the top location for consumers to begin a product search, to research a product prior to an online or in-store purchase, and the leading platform to complete the purchase.”

“Our millennials survey found that AMZN is the most preferred shopping channel by a wide margin once again in 2021, despite the reopening of many traditional retail locations,” Blackledge wrote in a commentary.

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“The preference for Amazon is even more pronounced among the 18-24 and 25-34 age cohorts, as 62% and 63% respectively cited Amazon as their most preferred shopping channel.”

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Morningstar analyst Dan Romanoff puts fair value at $4,200 for Amazon and assigns it a wide moat.

“Consumers' online shopping levels are returning to more normal levels as they shift some spending to other entertainment sources and offline shopping,” he wrote in a July 29 commentary.

“Meanwhile, the company continues to add capacity at a breakneck pace in order to meet customer demand and one-day delivery.”