(News Bulletin 247) – Mizuho announced on Friday that it had raised its target price on Amazon, which it raised from 135 to 145 dollars while maintaining its buy recommendation on the stock.
In a research note, the analyst points out that the e-commerce giant managed to do better than expected in the first quarter under the impetus of its cost-cutting measures.
The intermediary also welcomes the Seattle group’s desire to adopt a ‘disciplined’ approach to investment and spending in its video streaming platform this year.
Regarding the AWS slowdown, which he attributes to ‘optimization of customer usage’, Mizuho believes that the division’s growth appears to be nearing a low point, but should see a gradual recovery through following.
“With the economy recovering, the cloud computing platform is well positioned to capitalize on both its price advantage and volume growth,” he said.
Based on the improvement in margins observed in e-commerce, the professional says it has revised its earnings forecasts for 2024 upwards.
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