Amazon: BofA raises price target

(CercleFinance.com) - BofA has raised its price target for Amazon shares, saying that the tech giant could benefit from multiple expansion.


Even though Amazon has been a "beneficiary" from Covid in 2020 - with its stock up 74% - the broker said it still sees strong growth prospects for the Seattle based company, with e-commerce penetration still low.

At the same time, Covid-19 should accelerate cloud demand in 2021, due to remote and distributed working, it said, therefore keeping its "buy" rating on the shares.

BofA, which raised its price target from 3,650 dollars to 4,000 dollars, said that the Amazon stock could also be supported by US stimulus and logistics capacity build, as well as the disappearance of over 10 billion dollars in Covid-related costs in 2020.

The stock is currently up 2%.

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