Jefferies affirmed the Seattle company as its No. 1 large-capitalization stock recommendation.
Analyst Brent Thill acted based on Amazon’s “attractive growth-adjusted valuation and upside to forward profit estimates,” he wrote in a report cited by Bloomberg.
Thill boosted his share-price target to $2,800 from $2,300.
Amazon’s forward price-to-earnings multiple is 81.3, below its five-year average of 86.1, according to Morningstar. The trailing-12-months multiple stands at 104, lagging its five-year average of 226.6.
Amazon has benefited from a horde of orders from consumers stuck at home during the coronavirus pandemic.
Long-term operating earnings can benefit from faster growth at Amazon’s high-margin businesses and from its market-share gains, Thill said.
The stock has “about 70% upside over [the next] three years” and could reach $4,000, he wrote.
Morningstar analyst R.J. Hottovy also has a bullish view on Amazon.
“It’s in a unique position amid the global coronavirus outbreak,” he wrote in a report last month.
“As containment efforts hasten and more consumers isolate themselves, ... some Amazon services will see increased adoption.” That includes groceries.
“With a spike in telecommuting, Amazon Web Services also stands to benefit from increased enterprise cloud computing, storage, networking/content delivery, its mobile app, and digital security usage,” Hottovy wrote.
But Amazon could face obstacles, he said. “At the top of the list is reduced discretionary spending.” Hottovy put the fair value of the stock at $2,400.
Amazon shares recently traded little changed at $2,387.51. They have jumped 29% over the past three months.