KeyBanc Weighs in on Amazon Inc (AMZN) Following MAGIC Apparel Trade Show

Amazon has made apparel a strategic focus to maximize profitability, says KeyBanc

KeyBanc analyst Edward Yruma offers insight on shares of, Inc. (NASDAQ:AMZN) after attending the MAGIC tradeshow in Las Vegas, which began on Monday, August 15th and ran through Wednesday, August 17th. The MAGIC tradeshow happens twice a year, and includes all aspects of fashion, from fabrics to footwear, they exhibit it all.

Amazon is readying itself to be a force to be reckoned with in the world of fashion, as Yruma believes the online retail titan is making strategic moves to make apparel its shining focus.

With a renewed direction pointing to fashion, Yruma reiterates an Overweight rating on AMZN with an $847 price target, which represents a just under 11% increase from where stock is currently trading.

Following the tradeshow, Yruma notes Amazon also intends to give more attention to returns and markdowns. Amazon’s goal, from the analyst’s perspective, is to maximize profitability. Additionally, AMZN hopes to drive vendors to increase spending on advertising.

Yruma opines, “Some vendors now have allocators on-site at Amazon to provide market intelligence and assistance. We also believe that Amazon is taking a more aggressive stance toward vendors; we think this is part of an attempt to improve retail profitability.”

According to TipRanks, three-star analyst Edward Yruma is ranked #1,756 out of 4,124 analysts. Yruma has a 51% success rate and earns 1.4% in his yearly returns. When recommending AMZN, Yruma realizes 7.7% in average profits on the stock.

TipRanks analytics show AMZN as a Strong Buy. Based on 34 analysts polled in the last 3 months, 32 rate a Buy on AMZN, while 2 maintain a Hold. The 12-month average price target is $880.47, marking a 15% upside from where the shares last closed.

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