As a sign of confidence in Amazon.com, Inc. (NASDAQ:AMZN), Oppenheimer analyst Jason Helfstein came out today with a favorable report, reiterating an Outperform rating on the stock, while raising the price target to $525 (from $415), which represents a potential upside of 24% from where the stock is currently trading.
Helfstein noted, “We are publishing a detailed segment model based on the company’s recent disclosure of financial information for its North American eCommerce, International eCommerce and Amazon Web Services (AWS) segments. Our updated model forecasts segment operating income (SOI) for each segment to 2023, in order to allow a four-part DCF that leads to a 12-18 months sum-of-the-parts (SOTP) valuation of $525.”
Furthermore, “We see very strong momentum at AWS, with its share of IT services increasing to 4.4% of global IT services in 2023, from 0.8% today. We are also publishing global GMV estimates to 2023, to better compare market share and margin structure to offline competitors, such as WMT.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Helfstein has a total average return of 7.5% and a 53.8% success rate. Helfstein has a 23.8% average return when recommending AMZN, and is ranked #478 out of 3590 analysts.