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Amazon Share Price Target Lifted to Wall Street High $2,900 at Goldman

Goldman analyst Heath Terry, like others, lifted his price target on Amazon, citing demand for its retail and cloud services during the pandemic.
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Online retail colossus  (AMZN)  is used to breaking records. And now the analysts who follow it are doing the same.

The Seattle company’s shares rose Thursday after Goldman Sachs raised its share-price target 12% to $2,900, the highest on Wall Street, from $2,600. Goldman reiterated its buy rating.

Just two days ago, Jefferies set a Wall Street high, with a target of $2,800. And Telsey Advisory Group matched that figure on Wednesday.

Like the others, Goldman is impressed with Amazon’s strength during the coronavirus pandemic. Consumers confined to their homes are buying online.

And companies forced from their offices are using Amazon’s cloud offerings to continue their operations with workers at home.

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"The increase in demand the company’s retail,  [Amazon Web Services], and ads businesses is seeing, and Amazon’s ability to meet the challenges of this demand, will ... serve to steepen the curve of its long-term-growth rate, drive incremental profitability, and further deepen the competitive moat around all of its businesses," Goldman analyst Heath Terry wrote in a report.

Despite the stock's recent surge, "the market continues to underestimate the long-term value" of Amazon, he said.

Morningstar analyst R.J. Hottovy is bullish on Amazon, too. But in a report last month, he did offer a caveat.

“While Amazon is well positioned to capitalize on coronavirus-related demand, it could also face obstacles. At the top of the list is reduced discretionary spending,” Hottovy wrote.

He puts Amazon’s fair value at $2,400.

The stock recently traded at $2,412.11, up 2.1%. It has jumped 28% over the past three months.