Are Amazon Upgrades Getting Out of Hand?
Amazon, Inc. (NASDAQ: AMZN) has made an incredible run in 2017 so far, needless to say many are chasing it higher, but at some point you have to wonder how high is too high? The stock has climbed about 50%…
Amazon, Inc. (NASDAQ: AMZN) has made an incredible run in 2017 so far — and many are chasing it still higher. But at some point you have to wonder how high is too high? The stock has climbed about 50% year to date, including 18.5% in this quarter, but it has been slowing down recently.
Instinet recently made a call on Amazon, raising its price target to a Street-high $1,360, implying an upside of roughly 20% from the current level.
Most of this call is based on the firm’s belief that Amazon can perpetually grow SG&A as a dependent on gross rate expansion. Considering product costs are unlikely to ease, a mix shift to higher margin segments could drive gross margin expansion.
[nativounit]
Accordingly, Instinet believes that mix shift alone could drive about 1,000 basis points of long-term gross margin lift, thus enabling a $160 billion investment into deepening Amazon’s moat.
Here’s what other analysts are saying about Amazon:
- Citigroup reiterated a Buy rating.
- KeyCorp has a Hold rating.
- Loop Capital has a Buy rating with a $1,300 price target.
- Leerink Swann has a Buy rating.
- Stifel has a Buy rating.
- Cantor Fitzgerald has a Buy rating.
Shares of Amazon were last seen at $1,127.07, with a consensus analyst price target of $1,220.74 and a 52-week range of $736.70 to $1,139.90.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
