As Amazon.com, Inc. (NASDAQ: Amzn) About the fastest growth rate in Amazon Web Services (AWS) sales in nearly four years, Justin Patterson, an analyst at KeyBanc, maintained a bullish outlook.
Patterson reiterated a Buy rating on AMZN stockAccording to a customer memo that Feinbold analyzed on July 16. Additionally, he raised the company’s 12-month price target for AMZN to $335 from $325, suggesting a potential upside of 30.8%.
The analyzer is named KeyBanc Amazon His favorite in the e-commerce stock category. He pointed to two key drivers, including resilient core retail trends and AWS sales growth.
Patterson noted that Wall Street estimates are underestimating Amazon’s trajectory, thus putting its 2028 revenue and EPS (earnings per share) forecasts about 2% and 3% above expectations, respectively.
The analyst also raised his estimates for Amazon’s revenue for 2026 and 2027, driven largely by stronger growth in AWS sales. Specifically, Patterson now expects AWS sales to rise 31% year over year in both years.
The new price target is based on a 25.5x multiple on its 2028 EPS forecast. Furthermore, the company expects Amazon’s net sales and operating income estimates to be $1.079 billion and $178.6 billion, respectively, for 2028.
Is AMZN a good stock to buy?
Ahead of Amazon’s July 30 earnings call, Wall Street analysts believe AMZN stock is a great pick, especially among e-commerce stocks. Moreover, 46 analysts Surveyed by TipRanks Over the past three months it has issued an average Strong Buy rating.
Additionally, these analysts set the average 12-month price target for AMZN stock at $318.98, which implies an upside of 24.81%. Notably, Amazon shares were trading at around $255.57 at press time, up more than 14% over the past 12 months.
As such, if Amazon continues to benefit from the ongoing AI boom, it is possible to achieve the analysts’ 12-month price target, and vice versa.
