Amazon (AMZN) is seeking to purchase stakes in several Indian film and media businesses, according to a report by The Indian Express newspaper. Inox Leisure, a theatre chain based in Mumbai, is among Amazon’s potential targets, according to the report citing confidential sources.
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Inox Leisure’s promoters control a 43.63% stake in the company while public investors own 56.23%. The chain operates 648 screens and has a bigger presence in the western part of India. Inox’s business has been adversely affected by the COVID-19 pandemic. It made a loss of 257 crore Indian rupees in the fiscal year ended March 2021. That compared to a profit of 141 crore rupees in the previous year.
Amazon’s video streaming service Prime Video launched in India in 2016, but the business has not grown as fast as Amazon expected, a source told the newspaper. The company is evaluating three to four deals in the film and media space to bolster its entertainment business. However, Inox has denied ever being in talks with Amazon about a deal. (See Amazon stock charts on TipRanks).
On July 26, Credit Suisse analyst Stephen Ju reiterated a Buy rating on Amazon stock and raised the price target to $4,850 from $4,000. Ju’s new price target suggests 31.09% upside potential.
The analyst cited expansion in Amazon’s e-commerce business as a reason for his bullish view on the stock. Ju noted the huge investments Amazon has made to expand its fulfillment capacity in a bid to speed up deliveries.
Consensus among analysts is a Strong Buy based on 32 Buys. The average Amazon price target of $4,332.90 implies 17.11% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in AMZN is currently Very Positive. The cumulative change in holdings across all 56 funds that were active in the last quarter was an increase of 660,500 shares.
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