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© Reuters.Why Amazon Stock Is Definitely The Holy Grail Even As Cloud Buyers Are Getting ‘More Surgical’
Benzinga-Evercore ISI Group Lowers Target Price, But Amazon.com, Inc. (NASDAQ: AMZN) stock last month, analyst firms continued to expect it to nearly double over the next year.
That’s why Evercore told clients with a long-term investment horizon to buy Amazon with both hands, calling it a “buffet buy.”
What happened: Evercore analyst Mark Mahaney Amazon maintained its Outperform rating, lowered its target price from $170 to $150, and cited new data showing demand for online retail and cloud computing remains soft.
“Three recent data points on the retail side and one data point on the cloud computing side support the lower estimates,” Mahaney wrote in a note to clients in December. .
A survey of retailer sales showed a slowdown in demand for common commodities relative to staple foods. After a slowdown in commodities sales in late October, they picked up around Thanksgiving.
“But discretionary sales have slowed again since Thanksgiving,” Mahaney said.
Most of Amazon’s retail business is discretionary. Evercore estimates that it could reach 70% or 80%.
Another holiday survey found something else.
“In contrast to the holiday 2021 reopening trend, a significant re-shift to online and mobile commerce channels is evident, with Amazon the clear winner in nearly every shopping category in terms of consumer spending intentions. is,” said Mahaney. .
Still, analysts warned 2022 is the first year “buy cheap gifts” Beyond “Increase Online Shopping” As a way to save money this holiday season.
Mahaney also highlighted November’s retail sales data, which points to weakness in discretionary spending. The weakest points were typically strong categories for Amazon: electronics, home furnishings, and sundries.
The aforementioned single data point on the cloud computing side surrounds Amazon’s re:Invent event. Evercore said it suggests that enterprise cloud buyers are becoming “moderately cautious” in a tough macro environment.
Recent data has adjusted Evercore’s near-term outlook, but the company strongly recommends Amazon for investors with a two-year horizon or longer.
The company will be negatively impacted by a possible recession in 2023, and Street’s estimates could be cut in both sales and profits, in part due to poor cost action to date. But AMZN remains arguably the highest quality asset we have covered. revenue and earnings outlook,” Evercore said.
Related Link: US Watchdog tweaks Amazon over laziness in recording workhouse injuries
AMZN Price Action: According to Benzinga Pro, Amazon has a 52-week high of $170.83 and a 52-week low of $81.43.
First published on December 19, 2022
Photo: Courtesy of Amazon.
AMZN Latest Rating
| March 2022 | Deutsche Bank | start coverage | buy | |
| February 2022 | Tigress Financial | maintain | buy | |
| February 2022 | credit suisse | maintain | excellent |
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