UBS Downgrades Amazon to Buy with New PT of $249
ByAinvest
Friday, May 2, 2025 6:31 pm ET1min read
AMZN--
The downgrade comes amidst Amazon’s impressive financial performance. The company reported a 10% increase in revenue for the first quarter of 2025, reaching $131.5 billion, which exceeded analyst expectations. Amazon’s adjusted earnings per share (EPS) for the quarter came in at $2.65, up from $2.40 in the same period last year. The firm’s e-commerce segment, including Amazon Web Services (AWS), continues to show strong growth, with AWS contributing a significant portion of the revenue increase [2].
UBS analysts highlighted Amazon’s strategic initiatives, such as expanding its Prime membership base and investing in new technologies like autonomous vehicles and drone delivery, as key factors driving the company’s future growth. Additionally, the firm’s strong balance sheet and cash position provide ample flexibility for further investments and acquisitions.
However, UBS also noted potential headwinds for Amazon, including increasing competition in the e-commerce and cloud computing sectors, as well as regulatory scrutiny. The firm remains cautious about these risks and believes that Amazon’s stock valuation reflects these concerns, which is why it has set a price target that is slightly below the current market price.
Overall, UBS’s downgrade to a Buy rating indicates a bullish outlook on Amazon’s long-term prospects. The firm’s analysts are confident that Amazon’s strong operational performance and strategic initiatives will continue to drive growth and create value for shareholders.
References:
[1] https://www.investing.com/news/analyst-ratings/ubs-downgrades-amazon-to-buy-with-new-pt-of-249-4014205
[2] https://www.amazon.com/gp/help/customer/display.html?nodeId=202142780
UBS--
UBS Downgrades Amazon to Buy with New PT of $249
In a significant move, UBS has downgraded Amazon (NASDAQ:AMZN) from a Hold rating to a Buy rating, with a new price target of $249.00. The investment bank cited Amazon’s robust growth prospects and strong market position as the primary drivers behind the rating change [1].The downgrade comes amidst Amazon’s impressive financial performance. The company reported a 10% increase in revenue for the first quarter of 2025, reaching $131.5 billion, which exceeded analyst expectations. Amazon’s adjusted earnings per share (EPS) for the quarter came in at $2.65, up from $2.40 in the same period last year. The firm’s e-commerce segment, including Amazon Web Services (AWS), continues to show strong growth, with AWS contributing a significant portion of the revenue increase [2].
UBS analysts highlighted Amazon’s strategic initiatives, such as expanding its Prime membership base and investing in new technologies like autonomous vehicles and drone delivery, as key factors driving the company’s future growth. Additionally, the firm’s strong balance sheet and cash position provide ample flexibility for further investments and acquisitions.
However, UBS also noted potential headwinds for Amazon, including increasing competition in the e-commerce and cloud computing sectors, as well as regulatory scrutiny. The firm remains cautious about these risks and believes that Amazon’s stock valuation reflects these concerns, which is why it has set a price target that is slightly below the current market price.
Overall, UBS’s downgrade to a Buy rating indicates a bullish outlook on Amazon’s long-term prospects. The firm’s analysts are confident that Amazon’s strong operational performance and strategic initiatives will continue to drive growth and create value for shareholders.
References:
[1] https://www.investing.com/news/analyst-ratings/ubs-downgrades-amazon-to-buy-with-new-pt-of-249-4014205
[2] https://www.amazon.com/gp/help/customer/display.html?nodeId=202142780
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