Citi has revised its price target for Amazon.com (AMZN, Financial), reducing it from $273 to $225 while maintaining a Buy rating on the stock. This adjustment reflects concerns regarding increased tariffs, which include a 145% levy on Chinese goods and a 10% base tariff on products from other nations. Changes in consumer behavior and uncertain macroeconomic conditions have also influenced this decision.
According to Citi's analysis, a "significant slowdown" in economic growth and rising inflation are anticipated, despite a temporary 90-day halt on reciprocal tariffs. These factors are expected to affect budgets for both e-commerce and online advertising. This led to a broader revision of projections and price targets across its coverage of these sectors.
Meanwhile, Citi has identified Meta Platforms (META) as its foremost recommendation in the sector, citing the company's robust user engagement, a strong new product cycle, and advancements in performance-based advertising. Amazon.com (AMZN, Financial), however, remains Citi's second choice in the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 67 analysts, the average target price for Amazon.com Inc (AMZN, Financial) is $258.73 with a high estimate of $306.00 and a low estimate of $200.00. The average target implies an upside of 39.95% from the current price of $184.87. More detailed estimate data can be found on the Amazon.com Inc (AMZN) Forecast page.
Based on the consensus recommendation from 73 brokerage firms, Amazon.com Inc's (AMZN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc (AMZN, Financial) in one year is $184.40, suggesting a downside of 0.25% from the current price of $184.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amazon.com Inc (AMZN) Summary page.
