Jefferies has issued a buy rating on Amazon, setting a price target of $320, which indicates a potential 29% increase from its recent trading price. The firm highlights that Amazon's enterprise value to EBITDA multiple is approximately 12, making it cheaper than its competitors, which have multiples of 18 for Alphabet and 19 for Walmart.
Analyst Brent Thill emphasized that Amazon is a leading player in both retail and cloud technology, and now is an opportune time to invest in the stock, which has seen modest gains over the past three months. Thill also pointed out that Amazon's upcoming AI-related data center initiatives could further enhance its growth, especially if the company increases its capital expenditure guidance.
Currently, 65 out of 69 analysts covering Amazon recommend buying the stock, although it has underperformed the S&P 500 year to date, with a 13% increase compared to the index's 21% rise