- Amazon Web Services is one of the internet giant’s fastest-growing business lines
- Citing the success of AWS, Goldman Sachs has upped its price target for Amazon to $US1,450 a share.
“We continue to believe Amazon’s pace of innovation, increasing pricing flexibility, and an ageing corporate technology base, will drive the ongoing shift of workloads into the cloud,” analyst Heath Terry said. “We remain Buy-rated (CL) and raise our 12-month price target to $US1,450 from $US1,300.”
The bank’s note comes on the first day of Amazon’s re:INVENT conference, hosted by its Web Services unit, one of its fastest-growing businesses.
“On top of its rapid pace of innovation and its penetration into developers, AWS’ product breadth also represents a competitive moat, in our view,” the bank said. “With nearly 100 products available across regions, companies would need to combine multiple vendors to compile the list of services offered collectively by AWS.”
Goldman’s new price target is the most bullish on Wall Street, according to Bloomberg data – 21% above the stock’s opening price of$1,257 on Tuesday.
Amazon Web Services Chief Executive Officer Andy Jassy will give a keynote address at the conference on Wednesday, followed by Chief Technology Officer Werner Vogels on Thursday. Goldman expects those talks to have exciting new product announcements that could boost the stock’s price.
Here’s what the unit has announced at previous conferences via Goldman:
Despite Goldman’s hopes, however, Jassy hinted on Twitter that Werner’s keynote will be a “deep look at the future of data and serverless,” rather than a traditional keynote filled with new product releases.
Amazon’s stock price is up 58.87% so far this year.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.