Evercore ISI Lifts Amazon Price Target Amid Strong AI-Driven Sales Growth
Financial analysts at Evercore ISI have upgraded their Amazon stock price target to $355 after survey results revealed strong growth in AI-driven sales. The firm's 14th Annual U.S. Online Retail survey showed that 57% of Alexa users bought a product they were not previously aware of, marking the first time AI has been shown to be additive for Amazon Retail. This is a significant finding, as it suggests that Amazon's Agentic AI capabilities are driving new sales and growth.
The survey also found that Amazon penetration remains strong at 92%, with regular same-day delivery usage rebounding to 49%. Prime members continue to drive sales, spending 3.1 times what non-Prime members spend. This gap is the widest recorded in the survey. Additionally, 46% of respondents who have seen Perishable Checkout added fresh groceries to their Amazon carts.
Evercore ISI's new price target is based on a P/E ratio of 30 times 2028 earnings and suggests that Amazon is undervalued compared to its growth prospects. The stock currently trades at a P/E of 20.6 with a PEG ratio of just 0.23, making it an attractive valuation relative to growth.