Saying the pandemic has “permanently inflected” e-commerce, Bernstein upgrades Amazon (NASDAQ:AMZN) from Market Perform to Outperform with a $3,400 price target. Bernstein was the last major investment firm sitting on Amazon’s sidelines.
Analyst Mark Shmuli writes that the pandemic “has pulled forward secular trends, from e-commerce to digital advertising and Cloud, with Amazon as a primary beneficiary across all three revenue pools.”
The analyst expects to “increase their dominant share position” even after brick-and-mortar stores are in full operation.
Shmuli says the firm “undervalued the power of being the sole e-commerce demand aggregator.”
Context: Amazon has been one of the largest retail beneficiaries of the pandemic. In the Q2 report in July, Amazon’s revenue was up 40% Y/Y to $88.91B.
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