As Amazon.com, Inc. (NASDAQ: AMZN) reported its fastest growth rate in Amazon Web Services (AWS) sales in nearly four years, Justin Patterson, an analyst at KeyBanc, maintained a bullish outlook.
Patterson reiterated a Buy rating on AMZN stock, according to a note to clients that Finbold analyzed on July 16. Additionally, he raised the firm’s 12-month price target for AMZN to $335 from $325, signaling a potential 30.8% upside.
The KeyBanc analyst named Amazon his preferred in the e-commerce stocks category. He cited two main drivers, including resilient underlying retail trends and AWS sales growth.
Patterson noted Wall Street’s estimates are understating Amazon’s trajectory, thereby positioning his revenue and EPS (earnings per share) forecasts for 2028 roughly 2% and 3% above consensus, respectively.
The analyst also raised his 2026 and 2027 revenue estimates for Amazon, driven largely by stronger AWS sales growth. Specifically, Patterson now expects AWS sales to climb 31% year over year in both years.
The new price target is anchored to a 25.5x multiple on his 2028 earnings-per-share projection. Furthermore, the firm anticipates Amazon’s net sales and operating income estimates of $1,079 billion and $178.6 billion, respectively, for 2028.
Is AMZN a good stock to buy?
Ahead of the July 30 Amazon earnings call, Wall Street analysts believe that AMZN stock is a great choice, especially among e-commerce stocks. Furthermore, 46 analysts surveyed by TipRanks over the past three months have issued an average rating of Strong Buy.
Additionally, these analysts have set an average 12-month price target for AMZN stock at $318.98, implying a 24.81% upside. Notably, Amazon shares traded at about $255.57 at press time, up over 14% during the past 12 months.
As such, if Amazon continues to benefit from the ongoing AI boom, the analysts’ 12-month price target could be achieved, and vice versa.
