Amazon’s (AMZN) fundamentals have improved significantly over the past few months, as the e-commerce giant has expanded its dominance in e-commerce and the cloud, while growing its presence in advertising and offline retail. Yet, the stock has dropped significantly recently.
Tigress Financial analyst Ivan Feinseth believes Amazon continues to leverage its strong retail, e-commerce, and web hosting platforms to develop new business lines and penetrate new markets and views the recent pullback in its share price as a buying opportunity. As such, Feinseth reiterates a Buy rating on AMZN, without suggesting a price target. (To watch Feinseth’s track record, click here)
Feinseth wrote, “AMZN continues to extend its core information management, web hosting, and e-commerce capabilities to support new business and drive new business opportunities including fulfillment and logistics, along with web hosting, data mining, and management services. AMZN is expanding its retail presence with the ongoing opening of its Prime Stores and expanding into development of cashierless convenience stores. AMZN is also expanding into medical services with the recent acquisition of online pharmacy, PillPack. In addition, AMZN is driving additional incremental revenue through the integration of display advertising on its websites as well as expanding Alexa audio interface and increasing IoT connectivity, which will continue to drive further growth. AMZN continues to make ongoing incremental investments that drive an increasing Return on Capital that will continue to drive further gains in its share price. We believe significant upside exists and view the recent pullback as a buying opportunity.”
Net net, Wall Street backs Feinseth’s bullish bite into the online retail titan, as TipRanks analytics exhibit AMZN as a Strong Buy. Out of 42 analysts polled in the last 3 months, 41 are bullish on Amazon stock versus only 1 analyst who remains sidelined. With a return potential of nearly 22%, the stock’s consensus target price stands at $2,182,38. (See AMZN’s price targets and analyst ratings on TipRanks)