Piper Sandler analysts increased the price target on Amazon.com (NASDAQ:AMZN) to $185.00 from the earlier $170.00, while continuing to recommend an Overweight rating for the stock. Additionally, Amazon was selected as the firm’s top Large Cap choice in the internet sector. This decision comes after conducting robust ad buyer and CIO surveys for 2024, which showed promising results.
The analysts believe that Amazon has significant potential for growth among large-cap stocks as we move into 2024. One key factor supporting this view is the substantial improvement in retail margins, coupled with expectations that the Street’s operating income projections for 2024 might be on the conservative side. Furthermore, there is an anticipation of increased expenditure on Amazon Web Services (AWS), bolstered by data from Piper Sandler’s 2024 CIO Survey. This survey indicated greater confidence in increased spending on AWS, with net spending intentions for AWS being the only cloud provider to show an increase (up by 2%) compared to the first half of 2023.