Bank of America (BofA) has adjusted the Amazon (NASDAQ: AMZN) target price from $230 to $248, maintaining a Buy ranking for the next 12 months.
The price adjustment comes as the growing momentum in robotics and artificial intelligence (AI) is expected to push the company’s operations even further after having ensured a 10.08% revenue increase over the past year.
Justin Post, a Wall Street analyst at BofA, noted that Amazon now deploys over 750,000 robots, which assist with approximately 75% of all customer orders.
However, with the debut of its first 12th-generation automated fulfillment center in late 2024 and the introduction of eight new delivery-focused robots in May this year, Post believes Amazon expects even further growth.
Justin Post’s Amazon forecast
Amazon is already accelerating its expansion with new Amazon Web Services (AWS) data centers in Chile, New Zealand, Saudi Arabia, and Taiwan, which are expected to enhance the company’s exposure to chips developed by Nvidia (NASDAQ: NVDA).
The analyst thus expects Amazon to continue leveraging robotics to reduce labor reliance, enhance order accuracy, and improve warehouse efficiency.
Amazon’s retail operating margin, which reached 5.4% in 2024 and is now projected to reach up to 11%, further supports the momentum.
At the time of writing, Amazon stock is trading at $205.01 and is down 0.34% in the premarket.
Post’s predictions, however, suggest an upside potential of 12.19%, so it remains to be seen whether the market will react to his bullish sentiment.
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