Wedbush Analyst Raises Amazon Price Target, Expects $46.5B Advertising Revenue

Wedbush's Scott Devitt raised their price target on Amazon (NASDAQ: AMZN) by 16.7% from $180 to $210 on 2023/12/21. The analyst maintained their Buy rating on the stock.

Devitt shared their view that "Amazon is on pace to generate $46.5B of advertising revenue in FY 2023," in the course of explaining their price target move.

The analyst continued by saying that "a close look at the scope of Amazon's advertising platform and an evaluation of the direction of recent product announcements suggest that the company's advertising opportunity remains early in its development."

In fact, Devitt reported, Wedbush believes "the company is well positioned to continue taking market share of global digital advertising spending over a multi-year period."

This positive outlook on Amazon's advertising revenue potential aligns with the consensus among analysts. Currently, 97.1% of top-rated analysts rate AMZN as a Strong Buy or Buy. Only 2.9% see it as a Hold, and no analysts recommend or strongly recommend selling the stock.

Looking ahead, the consensus forecast among analysts is that AMZN's upcoming year will deliver earnings per share (EPS) of $2.75. If the analysts are correct, this would represent a 40.9% increase in AMZN's next yearly EPS on a year-over-year basis.

Investors have reason to be optimistic about Amazon's performance. Since the company's last quarterly report on September 30, 2023, the stock price has risen by 21%. On a year-over-year basis, the stock is up by an impressive 77.3%. During this period, AMZN has outpaced the S&P 500, which has seen a 22.4% increase.

Scott Devitt, the Wedbush analyst who raised the price target on Amazon, has a proven track record. According to WallStreetZen, Devitt is ranked in the top 5% out of 4,437 Wall Street analysts, with an average return of 13.2% and a 53.3% win rate. They specialize in the Industrials and Consumer Cyclical sectors, among others.

Amazon.com, Inc. is a global retail giant that operates through three segments: North America, International, and Amazon Web Services (AWS). The company offers a wide range of consumer products and subscriptions through online and physical stores. In addition to its retail operations, Amazon manufactures and sells electronic devices such as Kindle, Fire tablets, and Echo. The company also provides various services, including cloud computing through Amazon Web Services.

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