Amazon’s stock gains after Mizuho analyst boosts target to $4,000

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Shares of Amazon.com Inc. rose 0.5% in premarket trading, after Mizuho analyst James Lee raised his stock price target to $4,000, citing signs suggesting third-quarter revenue is tracking above expectations. Lee’s previous target was $3,700, and he kept his rating at buy, which he’s had on the stock for at least the past three years. “From our proprietary checks using Searchmetrics, U.S. search traffic maintained a consistent growth rate compared to 2Q20 at 14% [year-over-year],” Lee wrote in a note to clients. “With conversion rates rising during the pandemic, we believe that 3Q20 is tracking ahead of consensus revenue growth of 32% YoY, or 8 points of deceleration compared to 2Q20, partially due to the rescheduling of Prime Day this year.” Amazon is expected to report third-quarter results on or around Oct. 22, with the FactSet consensus for revenue of $92.6 billion. Lee is now one of 9 analysts, of the 48 analysts surveyed by FactSet, to have Amazon stock price targets of at least $4,000. The highest is Pivotal Research analyst Michael Levine’s $4,500 target, while the average target is $3,738. The stock has run up 72.7% year to date through Thursday, while the S&P 500 has gained 6.7%.
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