As Amazon.com, Inc. (NASDAQ:AMZN) adds more and more private brands to its retail belt, Pacific Crest analyst Edward Yruma is bullish on the online auction and e-commerce leader’s multi-billion dollar prospects down the road.
Therefore, spotlighting meaningful value in Amazon’s private-label apparel brands, particularly underscored in encouraging search results, the analyst reiterates an Overweight rating on AMZN with a price target of $895, which represents a just under 6% increase from where the shares last closed.
Yruma notes, “We believe that control of the search box is extraordinarily important and that select targeting of generic search terms can help enhance awareness of Amazon’s private-label offerings,” praising the company’s clear visibility.
Additionally, when sizing up the nine of 14 private label brands aimed exclusively for Amazon Prime members, the analyst asserts, “We think that these items are priced at a strong value relative to their competitive set and help reinforce the value of the Prime membership.”
Ultimately, “We believe that AMZN is taking advantage of the dislocation in apparel retailing and aggressively rolling out a more-expansive private-label offering. We now believe that AMZN has at least 14 private-label apparel brands in the United States and United Kingdom, nine of which are for Prime members only. We peg apparel at Amazon as $14 billion-plus and arguably one of the most important growth areas in the retail business,” Yruma surmises.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Edward Yruma is ranked #2,379 out of 4,549 analysts. Yruma has a 48% success rate and earns 0.7% in his yearly returns. When recommending AMZN, Yruma collects 19.3% in average profits on the stock.
TipRanks analytics demonstrate AMZN as a Strong Buy. Based on 28 analysts polled by TipRanks in the last 3 months, 27 rate a Buy on Amazon stock while 1 maintains a Hold. The 12-month average price target stands at $939.28, marking a nearly 11% upside from where the stock is currently trading.