Wolfe Research Initiates Coverage of Amazon with Positive Outlook
- Analysts have predicted that Amazon's stock could rise by as much as 30%, highlighting optimism around the e-commerce giant's performance.
- Shopify also garnered attention, with analysts upgrading their views on the company's stock.
- This news reflects the increasing confidence in the e-commerce sector amidst changing market dynamics.
Wolfe Research has commenced coverage of Amazon, assigning an outperform rating and projecting nearly 30% upside potential for the tech giant. The firm expressed optimism about Amazon's growth, particularly in its AWS segment, which is expected to see accelerating year-over-year growth. Analysts anticipate ongoing retail margin expansion and increased market share in e-commerce, driven by improvements in delivery speeds and a shift towards everyday essentials. Additionally, new growth opportunities are expected from Amazon's Prime Video, Grocery, and Logistics services. In contrast, Wolfe Research has lowered its domestic same-store sales estimates for Starbucks and Yum Brands, citing concerns over consumer behavior in China and competitive pressures as they approach 2025. Year-to-date, Starbucks shares have plummeted by 24%, while Yum Brands has experienced a more modest decline of 2%. This shift in outlook reflects broader challenges facing these companies in the current market environment. Meanwhile, Jefferies has raised its price target for Netflix ahead of its upcoming earnings report, increasing it from $655 to $780. The firm anticipates significant revenue growth, projecting a 23% increase for the second quarter. Additionally, Jefferies upgraded another e-commerce stock to a buy rating, raising its price target to $82 per share, reflecting a positive sentiment in the sector. Lastly, analyst Alan Gould downgraded a social media stock to hold, maintaining a price target of $75 per share, indicating a cautious approach amidst fluctuating market dynamics.