Wells Fargo Lifts PT on Amazon.com (AMZN) Stock
π Wells Fargo raised its price target for Amazon (AMZN) to $313 from $312 on July 2.
π The firm maintains an 'Overweight' rating and expects positive revisions to AWS and operating income.
β οΈ Analysts anticipate Q3 revenue guidance will miss estimates due to a shift in Prime Day timing.
π° Amazon plans to raise at least $25 billion via an eight-part bond sale for AI infrastructure.
π The new price target is calculated based on 30x the firm's 2027 EPS estimate.
π€ CNBC reports Amazon is continuing its massive artificial intelligence buildout with significant capital raising.
Bullish Signals
- Wells Fargo raised its price target for Amazon to $313, indicating continued confidence in the stock's valuation.
- The firm maintains an 'Overweight' rating and expects positive revisions to AWS revenue and total operating income.
- Amazon is securing at least $25 billion in capital through a bond sale to fund its strategic AI expansion.
Risk Factors
- Wells Fargo expects Amazon's Q3 revenue guidance to fall slightly below street estimates due to the timing shift of Prime Day.
- The analyst firm suggests that other AI stocks may offer higher returns over shorter timeframes compared to Amazon.
Full Analysis
On July 2, Wells Fargo raised its price target for Amazon.com (NASDAQ: AMZN) to $313 from $312 while maintaining an 'Overweight' rating. The analyst firm anticipates healthy Q2 performance driven by continued acceleration in its AWS cloud division and expects positive revisions to both AWS and total company operating income.
Wells Fargo's new price objective of $313 is based on a 30x multiple of the firm's 2027 EPS estimate. While the analyst expects Amazon to provide guidance for operating income that will beat consensus, they foresee Q3 revenue guidance falling slightly below street estimates due to a shift in Prime Day timing.
Separately, CNBC reported that Amazon is planning to raise at least $25 billion through an eight-part bond sale to fund its massive artificial intelligence buildout. Despite acknowledging the investment potential of AMZN, Wells Fargo notes that some AI stocks may offer higher returns over shorter timeframes.