Wedbush Securities just put a $US1250 price target on Amazon‘s stock.
On April 24, Wedbush Securities analyst Michael Pachter circulated a first quarter preview to clients to reiterate his “Outperform” rating and raise his price target on shares of the retail giant from from $US900 to $US1250. That would represent a 38% increase. According to Factset, Pachter now has the highest price target of any analyst among the 46 that cover Amazon.
Amazon reports earnings after the close Thursday, April 27. Wedbush predicts Amazon will beat analyst estimates on both the top and bottom lines. Wedbush sees Amazon reporting $US35.97 billion in revenue versus expectations of $US35.30 billion, and predicts earnings of $US1.06 billion versus consensus of $US900 million.
Wedbush says that Amazon Web Services in the “growth engine” for Amazon and the key to expanding margins. In the earnings preview, Wedbush says it expects margin expansion driven by AWS and held back slightly by content spending for Amazon Prime Video.
Wedbush notes one interesting future catalyst for the stock may be the new, “Amazon Cash” program where consumers can transfer cash to their Amazon account by having participating retailers scan the user’s personal barcode. The program is targeted at consumers who don’t have a credit or debit card.
Additionally, Wedbush is excited about Amazon’s flourishing lineup of original content, including feature length films like the critically acclaimed, The Lost City Of Z.