Morgan Stanley Analyst Sees Efficiency Upside for Amazon, Predicts 20% - 60% Stock Price Upside
Portfolio Pulse from Anusuya Lahiri
Morgan Stanley analyst Brian Nowak has given an Overweight rating to Amazon.Com Inc (NASDAQ:AMZN) with a price target of $175. He predicts a 20% - 60% stock price upside due to efficiency improvements. Nowak expects Amazon to remain disciplined and ROI-focused on forward investment in core and emerging projects. He believes that the path to $5+ of EPS will likely come from efficiency in three main areas.
September 14, 2023 | 7:35 pm
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Morgan Stanley analyst predicts a 20% - 60% stock price upside for Amazon due to efficiency improvements. The analyst expects Amazon to remain disciplined and ROI-focused on forward investment in core and emerging projects.
The analyst's prediction of a 20% - 60% stock price upside for Amazon is based on expected efficiency improvements in the company. This includes lower shipping and fulfillment cost/unit through higher square footage/headcount utilization, content cost discipline quickly leading to reported retail profit upside, and 1P merchandise margins still below FY18/FY19 levels. This positive outlook is likely to have a positive impact on Amazon's stock price in the short term.
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IMPORTANCE 90
RELEVANCE 100