Amazon shares closed in the green in the US Monday, as SunTrust analysts raised their price target for the tech giant. The reason behind this latest increase is down to its Private Label business, which SunTrust says could generate revenues of some $25 billion by 2022.
Amazon shares ended the US Monday session 1.45% higher at $1,665.27. The stock is also trading a little higher in after-hours activity.
Amazon’s price target
SunTrust Monday raised its Amazon 12-month price target from $1,900 to $2,000, a 21% upside on current levels. The stock hit an all-time intraday high during the Monday US session.
“As strong an e-commerce platform as Amazon has become over the last 20 years, we believe that the best has yet to come,” analyst Youssef Squali wrote in a note to clients.
“Private label is one of the highly under appreciated trends within Amazon, in our view, which over time should give the company a strong 'unfair' competitive advantage. 'Unfair' because it'll be very difficult to dislodge the company once it attains it; fair because it's earned, not bestowed,” Squali added.
The analyst details that private label sales are the fourth largest on the ecommerce platform, behind Nike, Under Armour and Hanes.
“We have chronicled roughly 70 private label launches/acquisitions over the past year alone, for a total of 100 or more currently. ... We believe Amazon is positioning itself within select categories including Electronics, Food, Apparel, all of which share a number of similarities including a very large total available market,” Squali wrote.
Could Amazon Alexa come to Xbox?
Separately, a report by Windows Central suggests that Alexa could soon be used to power up and play your Xbox One. It says it has received further evidence that this will happen and that compatible Echo devices will soon be able to connect to and control your Xbox One.
The article adds that Google Assistant is also likely to be available as a voice controlling option for the games console.