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Amazon shares could rally near 26 percent after earnings beat, analysts say after bullish upgrades
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Loading...Amazon's stock received a slew of upgrades from Wall Street analysts on Friday after delivering market-beating earnings.
On Thursday, the e-commerce giant reported fourth quarter revenues that beat expectations with the Amazon Web Services (AWS) cloud division helping to propel numbers.
Amazon shares closed at $1,390 on Thursday, but after hours shares popped over 5 percent.
A number of analysts raised their price target for Amazon shares. Here are some of the biggest moves:
Morgan Stanley raised its target to $1,500 from $1,400
Barclays upped its price target to $1,580 from $1,210
Credit Suisse raised its price target to $1,750 from $1,410
Mizuho raised its price target to $1,700 from $1,300
J.P. Morgan raised its price target to $1,650 from $1,385
Bank of America Merrill Lynch raised its price target to $1,650 from $1,460.
Amazon forecast that its operating income for the first quarter of 2018 would be between $300 million to $1 billion, below the $1.5 billion street consensus, likely indicating heavier investments going forward. But this did not worry analysts.
Credit Suisse's target price of $1,750 is the highest of the latest round of upgrades. If realized, it would represent a near 26 percent increase from Thursday's closing price of $1,390.
Analysts are extremely bullish on Amazon's stock in the long term, thanks to a number of factors.
"In a nutshell, Amazon remains one of our favorite secular tech growth stories for FY18... and these robust results and 2018 outlook support the Amazon consumer growth thesis, coupled by cloud strength on the AWS segment which is still in the early innings of playing out among enterprises globally on the secular cloud theme," Daniel Ives, head of technology research at GBH Insights, wrote in a note Thursday.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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