Piper Sandler increased the price target on Amazon.com (NASDAQ:AMZN) from $175.00 to $185.00, while reiterating an Overweight rating.
The analysts suggest that a reevaluation of comments made during the Q2 earnings call indicates that Amazon may have achieved higher levels of efficiency in Shipping & Fulfillment costs. This is evidenced by improvements in gross margins, and the guidance for incremental Operating Income in Q3/23 is noted as the strongest in the company’s history.
The analysts see this as a favorable time to invest in Amazon, given the positive changes in margins and the anticipated upturn in growth for Amazon Web Services (AWS).