Bank of America on Thursday raised its price target for Amazon from $168 to $185, while renewing its buy recommendation on the stock.
In a note, the brokerage said it expects the group's profit margins to improve this year, thanks in particular to the integration of advertising on the Prime Video platform, which it believes could generate several billion dollars in revenue, and to the re-acceleration of growth at AWS, its cloud division.
The broker also points to a good performance from e-commerce activities in the US, against a backdrop of decelerating inflation, as well as a possible upswing in logistics-as-a-service activities.
He also highlights the launch of a new artificial intelligence model, all of which could, in his view, enable the group to get closer to an operating margin of 10% in the long term.
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Amazon.com, Inc. is one of the world leaders in on-line distribution of products to the general public. The group also operates a marketplace activity, allowing individuals and distribution companies to conduct their purchase and selling transactions for goods and services. The activity is organized around three families of products and services:
- electronic and computer products: toys, cameras, computers, laptops and peripherals, TVs, stereo systems, readers, wireless communication products, etc. Amazon.com also offers kitchen and garden equipment, clothing, beauty products, etc.;
- cultural products: books, musical products, video games and DVDs;
- other: primarily Internet interface and application development services.
Net sales break down by source of income between sales of services (55.5%) and sales of products (44.5%).
Net sales are distributed geographically as follows: the United States (68.8%), Germany (6.5%), the United Kingdom (5.9%), Japan (4.5%), and other (14.3%).
AMAZON.COM, INC. 
