Susquehanna Maintains Positive Outlook on Amazon with $325 Target
Susquehanna has reaffirmed its Positive rating on Amazon.com (AMZN) with a $325.00 price target, indicating substantial upside potential. Current data shows the stock is undervalued, with a Fair Value of $285.21 compared to its current price of $251.40. Amazon trades at a P/E ratio of 20.4 and a PEG ratio of 0.22, suggesting it is trading at a low price relative to its near-term earnings growth.
The firm’s industry checks highlight optimism about full-funnel advertising potential on Amazon, 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 is expected to grow, with Alexa for Shopping adding queries and better shopping signals, while the demand-side platform offers advertisers another way to reach consumers.
Susquehanna’s checks suggest a positive outlook for the holiday season, though concerns about elevated gas prices and consumer health persist. Feedback on Prime Big Deal Days was constructive, with advertisers expected to participate, though some are saving more budgets for Cyber Week. Discussions also focused on the implications and timing of agentic commerce, where consumers retain a say in most purchases.
In other recent news, Amazon has received positive analyst updates. TD Cowen reiterated a Buy rating, highlighting significant growth in its cloud computing business, AWS, with projected third-quarter 2026 revenue of $202 billion. Cantor Fitzgerald maintained an Overweight rating, following the company’s unveiling of AI-powered advertising products at its unBoxed 2026 conference. Wells Fargo also reiterated an Overweight rating, noting AWS’s pricing power with a 15% increase in GPU reserve pricing. Evercore’s survey results indicated positive revenue trends for Amazon in digital ad spending, alongside companies like Meta and Google. Goldman Sachs included Amazon in its Director’s Cut list for October, reflecting its updated portfolio recommendations.