Piper Sandler maintains an Overweight rating on Amazon (AMZN) and raises its price target to $233, citing strong holiday season demand and sustained momentum in Amazon Web Services. The firm highlights near-term catalysts that could drive shareholder value.
- Piper Sandler maintains Overweight rating on Amazon (AMZN)
- Price target raised to $233, implying ~14% upside
- Holiday season expected to drive strong retail sales momentum
- AWS revenue projected to grow over 17% year-over-year
- AWS contributes over 14% of total revenue and more than 70% of operating profit
- Upgrade reflects confidence in Amazon’s diversified profitability model
Piper Sandler has upgraded Amazon Inc. (AMZN) to an Overweight rating, setting a new price target of $233 per share amid expectations of robust performance during the critical holiday shopping period. The firm underscores the dual drivers of elevated consumer spending and continued strength in Amazon’s cloud computing arm, AWS, as key factors supporting the positive outlook. The $233 target implies approximately 14% upside from AMZN’s current trading level, reflecting confidence in Amazon’s ability to capitalize on seasonal demand. The holiday season historically accounts for a significant portion of Amazon’s annual revenue, with analysts pointing to early sales trends and inventory positioning suggesting strong demand. Additionally, AWS is projected to grow revenue by over 17% year-over-year, driven by enterprise cloud adoption and expanding international operations. Market participants are likely to view the upgrade as a signal of growing confidence in Amazon’s operational resilience and profitability, particularly as the company navigates inflationary pressures and competitive dynamics in e-commerce. The upgrade may influence institutional positioning and retail investor sentiment ahead of the company’s next earnings report. Amazon’s diversified business model remains central to its value proposition, with AWS now contributing more than 14% of total revenue and generating over 70% of operating profit. The combination of retail momentum and cloud performance underscores the company’s ability to generate consistent margins and reinvest in innovation.