Amazon's Price Target Raised to $300, Analyst Cites Improving Macro and AWS Strength.

Morgan Stanley's top analyst, Brian Nowak, has increased the price target for Amazon stock (AMZN) by 20%, raising it to $300 from $250, while maintaining his Buy rating. The analyst cited an improving macroeconomic backdrop and a manageable tariff situation as the main drivers of his bullish outlook. Nowak believes that Amazon Web Services (AWS) growth potential is strong, backed by its rapid adoption and increasing partnerships, including with AI startup Anthropic. The revised price target implies nearly 35% upside potential from current levels.

Morgan Stanley's top analyst, Brian Nowak, has increased the price target for Amazon stock (AMZN) by 20%, raising it to $300 from $250, while maintaining his Buy rating. The analyst cited an improving macroeconomic backdrop and a manageable tariff situation as the main drivers of his bullish outlook. Nowak believes that Amazon Web Services (AWS) growth potential is strong, backed by its rapid adoption and increasing partnerships, including with AI startup Anthropic. The revised price target implies nearly 35% upside potential from current levels.

The update, released on July 10, 2025, reflects a significant endorsement of Amazon's business strategies and future market prospects. Nowak's "Overweight" rating indicates the expectation that AMZN will outperform the average total return of stocks covered by the analyst. This is in line with the average one-year price target of $245.30, set by 67 analysts, and the consensus recommendation from 73 brokerage firms, which is currently 1.7, indicating "Outperform" status.

The improved macroeconomic backdrop, characterized by a more manageable tariff situation, has played a crucial role in the analyst's bullish outlook. Morgan Stanley has raised its 2026 and 2027 earnings per share estimates by 9% and 6% respectively, bringing the 2026 EPS forecast back to $8. The firm noted that the macro backdrop has "significantly improved" since mid-April when it published a report analyzing factors of uncertainty while maintaining its Overweight rating on Amazon.

Additionally, Nowak expressed increased conviction in Amazon Web Services (AWS) acceleration, citing factors including Anthropic, Azure’s generative AI strength, and results from a CIO survey. The analyst also mentioned that AWS has unveiled its custom cooling hardware designed for Nvidia (NASDAQ:NVDA)’s latest AI chips, marking a significant development in the tech industry.

The revised price target from Morgan Stanley reflects a significant endorsement of Amazon's business strategies and future market prospects. This bullish outlook is also supported by recent analyst notes from BofA Securities and Citizens JMP, which highlighted the company's extensive reach and growth vectors across logistics, cloud services, and digital advertising.

In conclusion, Morgan Stanley's revised price target for Amazon stock (AMZN) to $300 reflects a positive outlook on the company's future performance and growth potential. The analyst's bullish outlook is supported by an improving macroeconomic backdrop, manageable tariffs, and strong growth prospects for AWS.

References:
[1] https://www.gurufocus.com/news/2970981/amazon-amzn-price-target-raised-by-morgan-stanley-to-300-amzn-stock-news
[2] https://www.investing.com/news/analyst-ratings/morgan-stanley-raises-amazon-stock-price-target-to-300-on-lower-tariffs-93CH-4130982