Two Top-rated Wall Street analysts, Nicholas Jones of JMP Securities and Brian Nowak of Morgan Stanley (MS), are optimistic about Amazon (AMZN) stock. Interestingly, both analysts highlight the company’s long-term potential, driven by its strategic cost-saving initiatives.
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Before moving ahead, investors should note that TipRanks ranks the Top analysts according to industry, timeline, and benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations.
Top Analysts Bullish on AMZN’s Cost-Saving Potential
Let’s take a closer look at what both analysts expect from AMZN stock.
- JMP Securities analyst Nicholas Jones reiterated a Buy rating on Amazon with a $265 price target, suggesting a 42.1% upside. Jones estimates Amazon could save over $20 billion annually by using self-driving technology for middle-mile transport and replacing gas-powered vans with Rivian (RIVN) electric vans for last-mile delivery, potentially cutting per-mile energy costs by nearly half.
- Morgan Stanley analyst Brian Nowak has reaffirmed a Buy rating on Amazon stock and a price target of $210, implying 12.6% upside. The analyst believes Amazon’s cost-cutting efforts, such as implementing leaner teams, could significantly boost profitability.
It’s worth mentioning that Amazon intends to boost the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025. This adjustment may be achieved through various methods beyond simply reducing staff. Analyst Nowak estimates that this initiative could result in the elimination of approximately 13,834 manager positions by early next year, potentially generating cost savings between $2.1 billion and $3.6 billion.
Is Amazon a Buy, Hold, or Sell?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 44 Buys and one Hold assigned in the last three months. At $224.05, the average Amazon price target implies a 20.13% upside potential. Shares of the company have gained 22.75% year-to-date.
