Here's Why Citi Remains Bullish On Amazon Despite Knocking It Off Focus List

  • Citi analyst Ronald Josey considers Inc AMZN vulnerable to softening consumer spending trends.
  • While Josey still believes in the eCommerce and cloud giant, the recent slide for shares and growing inflation concerns prompted some reflection.
  • “Given macro uncertainty and lack of near-term catalysts, Josey removed Amazon from Citi’s NAM Focus List.”
  • Josey added that a weaker consumer in a more challenging macro environment could impact earnings moving forward. 
  • Still, Amazon remains a top pick for the internet sector and remains “Buy” rated with a price target of $4,100 (88.7% upside). 
  • Josey indicated the troubled consumer could prove positive for Amazon, in his view.
  • Josey considers Amazon relatively well-positioned to reaccelerate retail growth in [the second half of 2022] with July’s Prime Day and the upcoming Back-to-School and Holiday shopping seasons as core catalysts.
  • Price Action: AMZN shares traded lower by 1.80% at $2,107.71 on the last check Friday.
  • Photo via Wikimedia Commons
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