Amazon’s stock bounces; Benchmark analyst sees ‘excellent entry point’ for investors

/ / News

Shares of Amazon.com Inc. bounced 0.7% in premarket trading Wednesday, a day after falling 3.1%, after a bullish call from analyst Daniel Kurnos at Benchmark. Kurnos reiterated the buy rating he’s had on the e-commerce giant for at least the past three years, while boosting his stock price target to $3,800 from $3,675, citing “unabated, unprecedented” e-commerce demand amid the COVID-19 pandemic. Kurnos acknowledges that there are several near-term headwinds, including capacity, hiring, shipping and fiscal stimulus and economic issues, but he noted that Amazon’s customer base, especially Prime members, tend to be above the median income. His new price target is 22.6% above Tuesday’s closing price of $3,099.96, which was 12.2% below its Sept. 2 record close of $3,531.45. “We get that timing is challenging but see the recent pullback as an excellent entry point into what we believe is still a multiyear story,” Kurnos wrote in a note to clients. The stock has run up 67.8% year to date through Tuesday, while the S&P 500 has edged up 4.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.