Amazon Set for Significant Expansion in Cloud and Retail, Analyst Foresees 2024 Boom
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst James Lee predicts a significant expansion for Amazon in cloud and retail sectors, expecting a boom in 2024. He maintains a Buy rating on Amazon (NASDAQ:AMZN) with a price target of $220. Lee foresees accelerated growth for AWS in FY24, with enterprises planning large-scale data migrations to the cloud. He also anticipates retail margin expansion due to delivery network regionalization and new initiatives like inbound delivery decentralization and Buy with Prime. Despite a lower Q4 revenue and EPS projection compared to consensus, Lee expects a 20% revenue growth and margin expansion for Amazon in FY24.
January 17, 2024 | 7:24 pm
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James Lee of Mizuho predicts strong growth for Amazon in cloud and retail, with AWS set to benefit from a cloud adoption supercycle and retail margins to improve. He maintains a Buy rating with a $220 price target.
The positive outlook from the analyst, including the expectation of AWS acceleration and retail margin expansion, is likely to instill investor confidence in Amazon's growth potential for FY24. The maintained Buy rating and a price target of $220 suggest a bullish stance on the stock, which could lead to a positive short-term impact on Amazon's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100