Retail and technology superpower Amazon.com, Inc. (NASDAQ:AMZN) received some bullish commentary this morning from analysts at Axiom Capital.
The firm reiterated its Buy rating on AMZN and lifted its price target from $877 to $953. That new target suggests a nearly 21% upside to the stock’s Monday closing price of $789.82.
Axiom noted that throughout its history covering the company, it’s seen CEO Jeff Bezos invest heavily in several growth opportunities. First, he did so with retail, building out infrastructure to capture huge e-commerce growth. Next, he did the same with Amazon Web Services (AWS), foreseeing massive cloud services demand growth.
Now, the firm says, Amazon is in the pole position in e-commerce outside of China, and AWS is scaling immensely, growing revenue and margins at a rapid rate.
Similarly, Axiom notes that current investments could pay off in the long run as well. Video and devices investments continue to reinforce the Prime service value proposition. Prime Now and Fresh look expensive and risky today, but in time should give Amazon a competitive edge in the future. Finally, the company’s big India build-out should pay off down the line, as the massive and fast-growing market there could one day become the Amazon’s largest retail segment.
Amazon shares rose $4.52 (+0.57%) to $794.34 in premarket trading Tuesday. Year-to-date, AMZN has gained 16.86%, versus a 4.25% return from the benchmark S&P 500 during the same period.