Amazon shares ended the US trading day higher Monday, as JP Morgan raised its price target on the tech giant. The move higher and positive analyst action, comes despite a number of recent issues, including legal action from France and an €100 million back tax payment to Italy.
The Amazon share price closed up 0.97% at $1,190.58. While it’s a good start to the week for the global retailer, the stock remains around $5 below the peak it hit toward the end of November.
Higher price target
JP Morgan analyst Doug Anmuth, issued his positive research note Monday and his upbeat outlook seemed to impress investors.
"We believe Amazon is well positioned as the market leader in e-commerce, where it's still early days with US e-commerce representing about 12% of adjusted retail sales (ex-gas, food, and autos), which we view as likely going to 30% over time," Anmuth wrote.
He added that its flexibility and Prime offering were also major advantages. In addition, Anmuth was positive on the AWS arm of Amazon, too.
“We believe AWS is the leader in the public cloud with roughly 75% US market share, and it remains early with only about 10 percent or more of workloads in the cloud today and the pace of cloud adoption accelerating in our view,” Anmuth said.
JP Morgan’s new price target for Amazon is $1,375, a 17% premium on Friday’s close.
Amazon shares gain despite European action
While the analyst highlighted a number of Amazon’s positive points, the global tech company continues to handle a number of less positive details in Europe.
The French consumer fraud office, DGCCRF stated Monday, it had filed a complaint against Amazon about abuse of its dominant ecommerce position when working with a local supplier.
The DGCCRF told Le Parisien newspaper of its action and that it could work to impose a fine of €10 million against Amazon, according to a Reuters report.
“The platform imposes unbalanced relations to its vendors,” DGCCRF official Loic Tanguy reportedly told Le Parisien.
And, late last week, Amazon also agreed to pay the Italian Government €100 million in back taxes owed between 2011 – 2015, to settle an ongoing disagreement.