Stocks
Citi Reaffirms 'Buy' Rating for Amazon Amid FTC Advertising Lawsuit
Citi has reaffirmed its 'Buy' rating for Amazon.com, Inc. (NASDAQ:AMZN), maintaining a $350 price target despite an ongoing Federal Trade Commission (FTC) lawsuit over advertising practices.
The bank pointed out that Amazon's advertising business has shown improvement, with inflation-adjusted Sponsored Products cost-per-clicks remaining flat from 2019 to 2024 and conversion rates increasing by more than 24% between 2021 and 2025.
Citi attributed its $350 target to a 2027 price-to-earnings multiple of about 31.5 times and an implied 2027 enterprise value-to-EBITDA ratio of roughly 11 times, which positions Amazon near the low end of its past decade's trading band.