Evercore ISI Boosts Amazon Price Target to $355 on Strong Retail Trends
Amazon.com's stock price jumped by 3% on Friday after Evercore ISI raised its 12-month price target to $355, indicating a potential upside of about 38.5% from the company's current trading level.
The analyst, Mark Mahaney, maintained his Buy rating and pointed to several retail trends that could support Amazon's shares. He cited findings from Evercore ISI's latest U.S. online retail survey, which revealed that 57% of Alexa AI users bought products they had not previously known about.
In addition, the survey found that Amazon's retail reach stood at 92%, a 34-point lead over Walmart. Mahaney also noted that improving adoption of same-day delivery, with regular usage reaching 49%, is another positive trend for the company. Furthermore, Prime members using the service spend 3.1 times more than non-Prime users.
The higher price target from Evercore ISI suggests room for further gains, but Amazon's market penetration has eased from last year's 95%.