Amazon Inc. (AMZN) shares traded higher Friday after analysts at Keybanc upgraded the stock to overweight, with a price target of $2,100, citing operational moves the online retail giant is making to accelerate profits.
KeyBanc analyst Edward Yruma argues Amazon is working to improve retail margins, including moves to close its 87 pop-up stores and evolving its mid-market grocery store business. Yuma also sees an "inflection point" in near-term profits from Amazon's cloud and advertising businesses, which he says could hit a combined $100 billion in sales by 2022. Yruma also adds his name to the list of all 45 Wall Street analysts followed by FactSet that have assigned either "buy" or "overweight" ratings on Amazon.
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Amazon shares were marked 1.09% higher in the opening minutes of trading, outpacing the 0.38% gain for the broader S&P 500, and changing hands at $1,704.04 each, extending its year-to-date gain to around 10.7%.