Amazon: shares gain as broker raises target price
(CercleFinance.com) - Shares of Amazon rose over 2% in morning trading on Wednesday, after Jefferies raised its target price for the stock.
The broker raised its target from 2,800 dollars to 3,100 dollars and gave the stock a "buy" rating.
While e-commerce stocks have outperformed year-to-date, as they benefit from a step-change in online consumption, Jefferies has increased its 2020 estimates for US e-commerce industry growth from 13% to 20%, its highest level since 2007.
"While there is concern the boost is temporary, our survey shows 63% of consumers plan to permanently spend more online after the pandemic ends," the broker added, seeing Amazon as capturing more share of wallet, with consumers keeping the site as their main reference when making purchase decisions.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker raised its target from 2,800 dollars to 3,100 dollars and gave the stock a "buy" rating.
While e-commerce stocks have outperformed year-to-date, as they benefit from a step-change in online consumption, Jefferies has increased its 2020 estimates for US e-commerce industry growth from 13% to 20%, its highest level since 2007.
"While there is concern the boost is temporary, our survey shows 63% of consumers plan to permanently spend more online after the pandemic ends," the broker added, seeing Amazon as capturing more share of wallet, with consumers keeping the site as their main reference when making purchase decisions.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.