Although Amazon.com, Inc. (NASDAQ: AMZN) stock has cooled off by more than 9% over the past four weeks after peaking at around $287.20 following a rally fueled by its strong second quarter (Q2) earnings beat, Mark Mahaney, a Wall Street analyst at Evercore ISI, expects a rebound towards a new all-time high (ATH) over the next 12 months.
Mahaney reiterated a ‘Buy’ rating for Amazon stock, according to a note sent to clients that Finbold analyzed on August 28. He raised this firm’s 12-month price target for AMZN to $355 from $315, representing a 12.64% lift.
With AMZN stock trading at $256.26 on Friday, this analyst suggests a potential 38.53% upside over the next 12 months.
“Amazon remains a Top Large Cap Long as survey results point to retail growth opportunities and intact leadership,” Mahaney noted.
Why is Evercore ISI bullish on Amazon stock?
This firm’s bullish position for AMZN was based on its 14th Annual U.S. Online Retail survey, which shows Agentic AI (Artificial Intelligence) is additive for Amazon retail.
Specifically, the survey results revealed that 57% of Alexa AI users purchased products they did not know about before. Additionally, the survey showed that while Amazon’s market penetration dipped slightly from 95% to 92%, it still holds a strong lead that is 34 percentage points ahead of Walmart, Inc. (NASDAQ: WMT).
Mahaney also based his bullish thesis on shipping speed adoption re-accelerating, evidenced by regular same-day usage rebounding to 49% and Prime same-day users now outspending non-Prime members by 3.1 times.
Evercore ISI also highlighted that Perishable Checkout is emerging as a real grocery unlock, as about 46% of respondents who saw it added fresh groceries to their Amazon carts. As a result, he maintains that Amazon remains a Top Large Cap Long.
On the cautious side, Mahaney pointed out that Amazon’s leadership position remains intact but did not widen. Furthermore, the company’s penetration fell to 92% from last year’s record 95%.
AMZN price forecast and performance
Following Mahaney’s decision to raise AMZN’s price forecast, 40 Wall Street analysts surveyed by TipRanks have set an average 12-month price target of $334.05, signaling a possible 30.36% upside.
Already, Amazon stock has been on a bullish trend year-to-date (YTD). As of press time, AMZN has gained 13.14% YTD, thereby reaching a market capitalization of roughly $2.8 trillion.
If Amazon continues to record revenue growth for the coming quarters, amid its bullish uptrend, these analysts’ targets could be achieved.
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