3 Analysts Raised Their Amazon Price Targets To $1,000 Or Higher This Month

One of the reasons for this is likely the monetization of a number of announcements made over the last several years, which can be seen from the number of analysts having $1,000+ target prices on the stock compared to previously lower objectives.

Until two months back, there was only one brokerage, Bernstein, that had a price objective of $1,000 on Amazon (with an attached Buy rating). However, in September, three brokerage houses, RBC Capital, Evercore ISI and JPMorgan have boosted their price target to $1,000 or above.

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MKM Partners and Deutsche Bank came close to the four-figure level with $995 and $985 as their respective target prices.

Evercore cited four key factors for boosting the price objective:

1. Fresh evaluation of retail automation.
2. Realizing gains from the investments made in the last several years.
3. Increasing estimates on FBA.
4. Automation offering quantifiable financial gains from costs.

Similarly, RBC Capital Markets pointed out online consumer survey that indicated Amazon extending its lead as the most preferred online retail site. The brokerage pointed out that 89 percent of the respondents favored the biggest online retailer. Another factor is the improving adoption rate of Prime Service that recorded 9 percentage points growth. The survey suggested that 76 percent of the respondents started using the service more compared to the time when they joined the program.

The following brokerages have a $1,000+ price target on Amazon shares:

• JPMorgan has $1,000 target price with a Buy rating.
• Evercore ISI kept a price target of $1,015 with a Buy rating.
• RBC Capital has a price objective of $1,000 with a Buy rating.

At time of writing this, the stock traded up by $12.16, or 1.49 percent, to $828.27 — still offering about a 20 percent upside potential.

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