Amazon.com, Inc. (AMZN) Gets a Price Target Hike Just in Time for an Upcoming Holiday Beat

GBH Insights' Daniel Ives sees plenty of "fuel left in the tank for AMZN to hit "unprecedented" gains.


Amazon.com, Inc. (NASDAQ:AMZN) shareholders are about to learn that the spirit of the holidays is best left without a ribbon, but rather a meaningful outclass come fourth quarter results.

Based on recent retail checks, GBH Insights analyst Daniel Ives angles for an absolute “blow-out” for Amazon this holiday season, which he believes will prove more stellar than expected. Additionally, between multiple expansion anticipated to grow stronger and rising enthusiasm backing the Whole Foods integration strategy, there is no doubt that the online auction and e-commerce king continues to be one of this analyst’s “top picks” of the financial universe.

In reaction, the analyst reiterates a Highly Attractive rating on AMZN stock while bumping up the price target from $1,185 to $1,270, which implies a nearly 13% upside from where the stock is currently trading. (To watch Ives’ track record, click here)

Ives underscores, “We believe the average Prime customer is forecasted to spend between roughly 20%-25% more this holiday season than the year ago period, coupled by major growth in US/International Prime members, should be setting the stage for a ‘blow out’ holiday season for Bezos & Co. With our estimates forecasting overall ecommerce growth rising 19% year over year for holiday season and Amazon set to comprise roughly half of US e-commerce holiday sales this year, it appears Amazon has significant momentum heading into year-end and could beat the Street’s 4Q top-line estimate by 3%-5% if these projections prove out. While shares have had an eye popping run to date, we believe there is more fuel left in the tank as Amazon only appears to be in the middle innings of an unprecedented growth cycle across both the consumer and enterprise segments.”

Meanwhile, with tailwinds from Whole Foods offering yet one more “avenue of growth” into a crucial customer demographic that will simultaneously lift Prime membership while cross-selling over 2018, the analyst sees Amazon’s “holy grail” of a customer base just getting stronger.

This bull roars with conviction among good company, considering TipRanks analytics reveal AMZN as a Strong Buy. Based on 33 analysts polled by TipRanks in the last 3 months, 32 are bullish on Amazon stock while 1 remains sidelined. With a return potential of 11%, the stock’s consensus target price stands at $1,253.97.  

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts