The firm's belief that the e-commerce company's web services will be able to drive growth in upcoming quarters is what led to the target increase. Canaccord maintained its "hold" rating on Amazon.com stock.
"Amazon stock has been a dramatic outperformer this year, up 39% YTD versus the S&P up 2%. The primary drivers have been slightly more constructive margin commentary from the company, solid growth even against currency headwinds, and the breakout of AWS as a separate segment," Canaccord said in an analyst note.
Shares of Amazon.com are lower by 0.95% to $425.83 at the start of trading today.
"For now we remain 'hold' rated based on the notion that margin expectations have expanded noticeably over the past two quarters, whereas in general we still believe the company is in investment mode and likely will be until some point in the future when international fulfillment expansion subsides. That said, we do see constructive signals in AWS growth, profitability, and potential valuation," the firm added.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."