Top Analyst Bets Amazon (AMZN) Stock Can Hit $2,000 in the Next 12 Months

SunTrust's Youssef Squali is dialing up the confidence on AMZN as he looks for powerhouse EPS and margins down the line., Inc. (NASDAQ:AMZN) just won an even bigger bullish bet from one of the best performing analysts on the Street. Top analyst Youssef Squali at SunTrust sees this king of e-commerce cultivating longer-term such a cutthroat competitive edge, it will be almost “unfair” for another rival to try to “dislodge” it. It will be advantage that is “earned, not bestowed,” making all “fair” in the game of competition.

Believing the speed of private label launches will bolster the company’s competitive moat, the analyst boosts his price target on AMZN stock from $1,900 to $2,000, which implies a 21% upside from current levels.

Squali anticipates “higher expected contribution from private label sales, which should prove accretive to EPS and margins over time,” adding: “With our tracking showing acceleration of house brand launches in early FY18, we continue to believe that private label is a highly under-appreciated trend, and one that should improve the user experience, grow retention and drive incremental revenue and EPS. We’ve revised our estimates for private label revenue to ~$25B from $20B by 2022, with ~$2B of incremental EBITDA, which if reinvested would further broaden Amazon’s moat.”

For a company that may showcase as robust of an e-commerce as Amazon, building an impressive legacy throughout the last 2 decades, the analyst wagers the yellow brick road is nowhere near close to ending: “we believe that the best has yet to come.”

For an e-commerce player tackling offline distribution with power, creating a private label business “at scale,” and extending cloud tentacles within the scope of the Global 10K- all while giving giants like Facebook and Google a run for their money in the marketing arena, Squali says watch out for further upside ahead. This in turn renders Amazon “one of our favorite name[s] within our IDM group.” After all, “private label is one of the highly under appreciated trends within Amazon,” continues the analyst, who as such gives kudos to fierce competitive momentum.

For the year, Squali forecasts private label sales at AMZN will bring $7.5 billion to the table, a marked 108% year-over-year jump from his last posted 2017 projection of $3.6 billion. However, when factoring in Whole Foods into the equation, the analyst sets expectations for total private label sales on AMZN to vault to $10.6 billion.

On a final note, “The company remains very early in building a sizable private label business, and as such, we expect growth in this segment to continue to outstrip overall ecommerce‚Äôs growth at Amazon,” contends Squali, who likewise hikes 2022 operating margin expectations from 11.4% up to 12.0%.

Youssef Squali has a very good TipRanks score with a 75% success rate and an impressive ranking in the top #50 on Wall Street: #37 out of 4,817 analysts. Squali realizes 22.3% in his yearly returns. When recommending AMZN, Squali garners 49.3% in average profits on the stock.

TipRanks suggests a strong bullish consensus betting on AMZN stock, with 35 out of 36 analysts polled in the last 3 months rating a Buy on the e-commerce king and just 1 maintaining a Hold. The 12-month average price target stands at $1,869.81, marking nearly 14% in upside potential from where the stock is currently trading.

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