As Amazon.com, Inc. (NASDAQ: Price AMZN) reported the fastest growth in Amazon Web Services (AWS) sales in nearly four years, Justin Patterson, KeyBanc analyst, remained optimistic.
Patterson reiterated his Buy rating on AMZN propertyaccording to information to clients analyzed by Finbold on July 16. In addition, they raised the 12-month price target of AMZN to $ 335 from $ 325, which indicates that 30.8% may be higher.
A KeyBanc expert named Amazon favorite among e-commerce stocks. He cited two key drivers, including sales trends and AWS sales growth.
Patterson also noted that Wall Street estimates are underestimating Amazon’s outlook, placing its revenue and EPS (earnings per share) forecasts for 2028 at about 2% and 3% above consensus, respectively.
The analyst also raised his 2026 and 2027 earnings for Amazon, largely driven by strong growth in AWS sales. In particular, Patterson now expects AWS sales to rise 31% year over year.
The new stock price is fixed at 25.5x multiple of its 2028 earnings per share. In addition, the company expects Amazon’s sales and operating income of $1,079 billion and $178.6 billion, respectively, for 2028.
Is AMZN a good stock to buy?
Ahead of Amazon’s July 30 earnings call, Wall Street analysts believe that AMZN stock is a good choice, especially among e-commerce stocks. Also, 46 specialists he was asked in TipRanks over the past three months they have given average ratings of Strong Buy.
In addition, the analysts have set a 12-month price target for AMZN at $318.98, which means 24.81% upside. Of course, Amazon shares traded at about $255.57 at press time, up more than 14% over the past 12 months.
Likewise, if Amazon continues to benefit from the ongoing AI boom, analysts’ 12-month price forecasts could be met, and vice versa.
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