In a report released today, Eric Sheridan from Goldman Sachs maintained a Buy rating on Amazon (AMZN – Research Report), with a price target of $255.00.
Eric Sheridan’s rating is based on a thorough analysis of Amazon’s ability to manage potential financial impacts from recent tariff announcements. Despite the potential for a $5-10 billion annualized EBIT impact due to increased merchandise costs, Sheridan highlights Amazon’s strategic levers to mitigate these effects. These strategies include negotiating with vendors to share cost burdens, adjusting customer pricing, and shifting the product mix towards items with lower tariffs.
Furthermore, Sheridan points out that Amazon’s merchandise margin remained stable during previous tariff implementations, which suggests resilience in their business model. This historical stability, combined with Amazon’s proactive measures, supports the Buy rating as investors can expect the company to navigate these challenges effectively.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $240.00 price target.