The stock of e-commerce giant Amazon (AMZN) can rise another 23%, according to Christopher Johnen, a four-star rated analyst at HSBC (HSBC).
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Johnen, who covers internet services for the British bank, reiterated a Buy rating on AMZN stock and raised his price target on the shares to $270 from $225. The upwardly revised price target implies that Amazon’s stock can climb 23% above current levels.
Amazon shares have declined 0.30% since the start of the year amid a broader downturn in equity markets. However, Johnen is telling investors not to fret about AMZN stock, saying that strong earnings and continuing excitement about artificial intelligence (AI) will continue to lift the share price.
Upcoming Financial Results
Johnen’s bullish note on AMZN stock comes ahead of the company’s next earnings report that’s expected at the end of January. He forecasts that Amazon will beat consensus estimates for the fourth quarter of 2024. Analysts are anticipating earnings per share (EPS) of $1.48 on sales of $187.3 billion.
Johnen sees another strong year for Amazon in 2025, and forecasts that Amazon Web Services (AWS), the company’s cloud-computing unit, will add $20 billion in revenue in 2025, with generative AI “driving growth.” Cloud-computing gives companies the ability to access the data needed to train AI models, and AWS currently has a 31% share of the global market.
AMZN stock has gained 43% over the past 12 months.
Is AMZN Stock a Buy?
The stock of Amazon has a consensus Strong Buy rating among 49 Wall Street analysts. That rating is based on 48 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $250.77 implies 14.58% upside from current levels.
