Tigress Financial Raises Amazon Price Target to $385 on AI Growth

Tigress Financial Partners has raised its price target for Amazon.com Inc. to $385, up from an undisclosed previous level, while maintaining a Buy rating. The firm believes the stock is undervalued at current levels, with a Fair Value suggesting further appreciation. Amazon’s P/E ratio of 20.4 is considered low relative to its near-term earnings growth prospects.

The upgrade highlights Amazon’s integrated AI capabilities as a key driver for accelerating growth across its businesses, particularly Amazon Web Services (AWS) and AI operations. Tigress Financial also points to expanded advertising monetization, increased retail purchase frequency, and growing Prime engagement as positive factors. The firm suggests Amazon is nearing an inflection point in business performance as earnings from its investment cycle start to outpace growth in operating capital.

AWS and AI are identified as the company’s most powerful growth engines. Amazon reported a 15.77% revenue increase over the last twelve months, with a robust gross profit margin of 50.77% and a return on assets of 15.22%. The firm notes that AI infrastructure is transitioning from a capital burden to a source of economic profit. Additionally, Amazon Advertising is emerging as a high-margin growth engine, while live sports are boosting Prime engagement, advertising, and commerce.

Other analysts have also expressed optimism about Amazon’s prospects. TD Cowen reiterated a Buy rating with a $350 price target, citing expected growth in AWS. Wells Fargo maintained an Overweight rating with a $338 target, highlighting AWS’s pricing power. Susquehanna and Cantor Fitzgerald both emphasized the potential of Amazon’s advertising initiatives, with Susquehanna setting a $325 target and Cantor Fitzgerald a $320 target. An Evercore survey also indicated positive assessments of Amazon’s digital ad spending capabilities.