Amazon.com (AMZN) - Get Amazon.com, Inc. Report shares rose Wednesday after Benchmark analyst Daniel Kurnos lifted his share-price target to $3,800 from $3,675 for the retail colossus, maintaining his buy rating.
He sees “unabated, unprecedented e-commerce demand” from consumers, he wrote in a commentary cited by Bloomberg.
The Seattle tech and online-retail giant should represent “a material share gainer this holiday period,” he said. Shopping on its Prime days Oct. 13-14 will sate “some early holiday demand to avoid shipping shortages.”
J.P. Morgan analyst Doug Anmuth predicts Prime Day revenue of about $7.5 billion, up 42% from the firm's estimated $5.3 billion last year.
"We reiterate our overweight rating and AMZN remains our top idea," he wrote in a commentary. His share-price target is $4,050.
The stock’s recent slide constitutes “an excellent entry point” for purchases, Kurnos said.
Amazon has dropped 11% since Sept. 2. It recently traded at $3,140, up 1.3%. Amazon has soared 68% year to date through Tuesday, compared with 4% for the S&P 500.
To be sure, Amazon does confront some obstacles, such as the possibility of inadequate government stimulus and an economic slowdown, Kurnos said.
Morningstar analyst R.J. Hottovy also likes Amazon.
“Amazon's disruption of the retail industry is well documented, but it continues to find ways to evolve,” he wrote in a July commentary.
“Its operational efficiency, network effect, and a brand intangible asset give its marketplaces sustainable competitive advantages that few, if any, traditional retailers can match.”
Hottovy puts fair value for the stock at $3,500.
The reason: “unabated e-commerce momentum and a more rapidly improving outlook for both payments and promoted listings,” according to a Benchmark commentary cited by Bloomberg.
EBay shares recently traded at $50.57, up 1.8%. They'd climbed 38% year to date through Tuesday.