From Financial Modeling Prep: 2024-07-09 17:03:00

Jefferies analysts are bullish on Amazon (NASDAQ:AMZN), raising their price target to $235 from $225 per share. They point to strong growth in Amazon Web Services and advertising as key drivers of their optimism, projecting an 18%+ upside to their target price.

AWS and advertising momentum, along with retail operating leverage, support Amazon’s value. 71% of Amazon’s $2.5 trillion enterprise value comes from AWS and advertising, compared to 26% from core retail.

Jefferies forecasts AWS revenue growth to rise from 13% in Q4/23 to 21% in Q4/24, driven by increased demand for cloud modernization and AI integration.

In the advertising sector, Jefferies expects stable growth of over 20%, with additional gains from Prime Video contributing to a net sales increase of $3.7 billion in 2024.

Amazon’s core retail business also has room for improvement, focusing on efficiency to boost margins. Jefferies notes the stock’s attractive valuation, trading at a 25% discount to its 10-year average EV/EBITDA estimate.



Read more at Financial Modeling Prep:: Jefferies Ups Amazon Price Target to $235 on Stron…