Amazon (AMZN) Stock Makes This Top Analyst Go Gaga
It’s not shoplifting if you… pay for it. Amazon (AMZN) launched its first Amazon Go store in Seattle, U.S. in 2016 and is working to add 3,000 more by 2021. Using an Amazon Go store works like this – you download the app, walk through a turnstile at the store, pick up your items and leave with them. Sensors in the store detect what items you’ve taken and then you’re charged and emailed a receipt. Currently, stores offer on-the-go meals, snacks, groceries, and basic pharmacy products.
RBC Capital’s top analyst Mark Mahaney considers this technology to be a big game changer for the physical retail experience and is very excited about the prospect of future establishments. Additionally, the analyst and his team tested out the store and were able to get breakfast and lunch goods in anywhere between 44 seconds and 4 minutes. The analyst says he noticed the difference in convenience the very next time he waited on line in a standard store. The bull reiterates an Outperform rating for AMZN with a price target of $2,300, showing a potential upside of around 49%.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Mark Mahaney has a yearly average return of 18.8% and a 60% success rate. Mahaney has a 34% average return when recommending AMZN, and is ranked #40 out of 5,100 analysts.
“Its in-store technology enables shoppers to have a very efficient and pleasant shopping experience. While not a significant financial contributor yet, we believe the overall opportunity is huge,” the analyst said. “Some key catalysts that offer a huge opportunity for Go Store include: a) Store expansion. b) Wallet share gains through larger basket size. c) Growth in awareness could drive foot traffic. d) Use of this technology in Whole Food stores. And e) License its technology to other convenience stores,” Mahaney concludes.
Overall, Mahaney isn’t the only one excited for the future of Amazon. The company has a resounding Strong Buy on Wall Street. TipRanks found out of 38 analysts, 36 are bullish on the stock with just 2 sidelined. The price target of $2,150.74 shows a potential upside of about 40%.