Amazon Stock Poised to Hit Fresh Highs After Strong Q2 Earnings; Target Price $4,332
The e-commerce leader for physical and digital merchandise, Amazon, is expected to report its second-quarter earnings of $12.24 per share, which represents year-over-year growth of about 19% from $10.3 per share seen in the same quarter a year ago.
The Seattle, Washington-based multinational technology giant would post revenue growth of about 29% to around $115 billion. The company has always beaten earnings per share (EPS) estimates in the last four quarters.
“We expect Amazon (AMZN) to beat the consensus estimates for revenues and earnings. The company has reported better than expected revenue and earnings figures in each of the last four quarters. In the past year, due to the pandemic, people turned to e-commerce and online marketplaces for their day to day needs which converted into a high growth in revenue for the company,” noted analysts at Trefis.
“The momentum continued in Q1 2021 as revenue grew by 44% for the quarter. The company also continues its expansion into different segments. Our forecast indicates that Amazon’s valuation is $4241 per share, which is 15% above the current market price of $3703.”
Amazon Stock Price Forecast
Thirty-two analysts who offered stock ratings for Amazon in the last three months forecast the average price in 12 months of $4,332.90 with a high forecast of $5,500.00 and a low forecast of $3,775.00.
The average price target represents a 19.48% change from the last price of $3,626.39. All of those 32 analysts rated “Buy”, none rated “Hold” or “Sell”, according to Tipranks.
Morgan Stanley gave the stock price forecast of $4,500 with a high of $5,300 under a bull scenario and $2,700 under the worst-case scenario. The firm gave an “Overweight” rating on the e-commerce leader’s stock.
“Amazon’s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest (last-mile delivery, fulfillment, Prime Now, Fresh, Prime digital content, Alexa/Echo, India, AWS, etc). Amazon Prime membership growth drives recurring revenue and a positive mix shift. Cloud adoption hitting an inflection point. Advertising serves as a key area for both further growth potential and profitability flow-through,” noted analysts at Morgan Stanley.
Several other analysts have also updated their stock outlook. BofA lowered the price objective to $4350 from $4360. Credit Suisse raised the target price to $4850 from $4000. Bernstein lifted the target price to $4200 from $4000.
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