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.
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.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
