Amazon shares rise sharply, broker raises target

(CercleFinance.com) - Amazon shares are up more than 7% on the Nasdaq, as Jefferies confirmed its "buy" recommendation on the stock in the early afternoon, with a price target raised from $225 to $235, on the heels of a publication marked by a new EBIT margin record, thanks to AWS (38.
1%) and International (3.6%).

The broker also highlighted the technology group's EBIT forecast of $16 to $20 billion for the fourth quarter of 2024, which was generally higher than investors' expectations of $16.5 to $17 billion.

The acceleration of AWS revenue growth by just 40 basis points, to 19.1%, was slightly disappointing, but management noted that the offering was constrained and that growth could improve over time', adds Jefferies.

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