Piper Sandler Reaffirms $320 Price Target for Amazon Amid Strong AWS Growth
Piper Sandler analysts have reaffirmed their bullish stance on Amazon stock, maintaining an Overweight view and a price target of $320. The firm points to Amazon's cloud business, AWS, as a key growth engine driving recent earnings success.
Average return on invested capital for Amazon stood at around 17% from 2018 to 2025, while the stock trades at approximately 21.34 times earnings and boasts a PEG ratio of 0.24.
Piper Sandler emphasizes that AWS has been a significant contributor to Amazon's growth, citing a 37% year-over-year revenue increase in the second quarter. The firm also highlights Amazon's capital efficiency and its ongoing expansion of AWS capabilities through strategic acquisitions and investments.