Raymond James has revised its outlook on Amazon.com (AMZN, Financial), downgrading the stock from a Strong Buy to Outperform, and adjusting its price target from $275 to $195. The decision stems from expectations of continued earnings pressure over the next few years, driven by an unstable macroeconomic climate, persistent tariffs, and a surge in investment intensity, according to analyst Josh Beck.
The firm indicates that despite potential diversification efforts in supply chain and logistics, Amazon's extensive connections with China and rural U.S. markets may pose challenges. These factors could potentially weigh on the company's performance, offsetting any gains from investments in artificial intelligence and other long-term ventures. While the firm acknowledges Amazon's strategic initiatives, it remains cautious given the limited progress in monetization and growing earnings risks.
In light of these challenges, Raymond James now favors investment in Meta Platforms (META), Uber (UBER), and MercadoLibre (MELI) over Amazon. The move reflects a strategic shift towards companies with perceived stronger near-term growth and return potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 66 analysts, the average target price for Amazon.com Inc (AMZN, Financial) is $253.43 with a high estimate of $306.00 and a low estimate of $200.00. The average target implies an upside of 46.82% from the current price of $172.61. More detailed estimate data can be found on the Amazon.com Inc (AMZN) Forecast page.
Based on the consensus recommendation from 72 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 $183.76, suggesting a upside of 6.46% from the current price of $172.61. 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.
