Bernstein has raised its price target for Amazon.com Inc. in anticipation of strong long-term growth driven by operational efficiency and sustained momentum across its business segments.
The new target is $265, up from $235, with an “Outperform” rating maintained.
Key drivers of this growth include solid performances in Amazon’s core retail business, AWS, and advertising operations. The firm also raised its 2026 EBIT estimate to $99.6 billion, reflecting improvements in cost efficiency, according to analysts.
Amazon’s cost management strategies, such as reducing inbound fees and boosting seller adoption, are expected to enhance margins, Bernstein said.
The brokerage expects operating margins to rise to 11.4% by 2025, supported by increased efficiency in retail operations and a positive outlook for AWS. Advertising revenue is also a strong contributor, with Bernstein projecting annual growth of around 20%, driven by its high margins and scalability.
Despite a 55% increase in Amazon’s stock this year, it still trades below historical averages on a forward EV/EBIT basis, suggesting potential for further price re-rating.
In summary, Bernstein’s positive outlook for Amazon is based on its ability to leverage efficiencies while driving long-term growth across its business segments, positioning it as an attractive investment for 2025.
