What's Going On With Amazon Stock Today?

Amazon.com Inc AMZN shares are trading higher. BofA Securities raised its price target on the stock Monday morning.

What Happened: BofA analyst Justin Post maintained Amazon with a Buy rating and raised the price target from $139 to $154, citing margin expansion ahead.

Post believes margins are set to show significant improvement this year and continue to improve in 2024 on the back of a renewed focus on efficiency in the company's fulfillment warehouses.

The ongoing logistics facility optimization aided by the addition of robotics, as well as Amazon's growing advertising business and higher fees for Amazon sellers provides room for margin upside given what it sees as conservative Street estimates. 

"We were encouraged by CEO comments that margins could recover beyond pre- pandemic levels, aided by growth in advertising, and we think 2025 is a reasonable time frame for potential margin expansion vs 2018," the BofA analyst said in a note to clients.

Although Post acknowledged that the Street is probably already looking for further upside, he believes further margin improvement can drive stock outperformance. 

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AMZN Price Action: Amazon has a 52-week high of $146.57 and a 52-week low of $81.43.

Amazon shares were up 1.34% at $125.08 at the time of publication, per Benzinga Pro.

Photo: courtesy of Amazon.