Amazon shares closed in the green in the US Wednesday, as MKM analysts raised their price target for the stock. The upgrade comes amid an upbeat outlook for a variety of Amazon’s different markets and suggests the company could be worth $2.25 trillion in less than 10 years.
Amazon shares ended the US Wednesday trading session 1.14% higher at $1,904.90. The stock is also a little higher in out-of-hours activity.
Amazon price target
Financial research group, MKM Partners Wednesday raised its 12-month price target for Amazon shares to $2,215 from $1,840, previously. MKM analyst Rob Sanderson, retained his ‘buy’ rating on the stock.
“We still think that Amazon is the best long-term growth investment available to investors today,” Sanderson wrote in a note to clients. “We think the margin story at [Amazon] is set up very well for the next several quarters,” Sanderson added.
MKM is upbeat on a variety of the global behemoth’s markets, including its AWS cloud services and its grocery market. Indeed, Sanderson said he expects Amazon to control 14.5% of the US grocery market by 2024, which would place it ahead of Walmart.
For AWS, MKM’s analysts said it could account for some 32% of Amazon’s predicted $88 billion profit. It’s worth noting, though, that even with that strong outlook for AWS, MKM expects growth of the cloud provider to ease back a little to around 37% in 2019, down from 46% in 2018.
But, considering AWS is the market leader in the industry, that would still be an impressive performance.
Amazon’s Brazilian clothing venture
Separately, Amazon said it will begin selling clothing and sportwear in Brazil. Third-party sellers will be able to offer their clothing and sportwear goods through Amazon’s local online store.
Over 300,000 products will be on offer in Brazil, from global branded clothing and sportwear, to high-end local fashion designer items.