Susquehanna keeps Positive rating on Amazon with $325 target

Susquehanna has maintained its Positive rating on Amazon.com (AMZN) with a price target of $325.00, suggesting strong upside potential. Current data indicates the stock is undervalued, with a Fair Value of $285.21 compared to its current price of $251.40. Amazon’s P/E ratio stands at 20.4, while its PEG ratio of 0.22 highlights its attractive valuation relative to near-term earnings growth.

The firm’s industry checks reveal optimism about Amazon’s full-funnel advertising potential, with advertisers increasing spending on sponsored search, AI shopping, and demand-side platform offerings. Newly announced products like Ads Agent and DVA+ are seen as additional positives. Core search growth is expected, driven by Alexa for Shopping, while the demand-side platform provides advertisers with more ways to reach consumers.

Holiday season trends are viewed positively, though concerns about elevated gas prices and consumer health persist. Prime Big Deal Days received constructive feedback, with advertisers expected to participate, though many are saving budgets for Cyber Week. The shift to agentic commerce is anticipated to take time, with consumers retaining control over most purchases.

Other recent updates include TD Cowen’s Buy rating, highlighting AWS’s projected growth, and Cantor Fitzgerald’s Overweight rating following Amazon’s AI-powered advertising products unveiling. Wells Fargo noted AWS’s pricing power, while Evercore’s survey showed positive revenue trends in digital ad spending. Goldman Sachs included Amazon in its Director’s Cut list for October, reflecting confidence in its growth potential.