Amazon Bulls Get Fresh Ammo: Analyst Hikes Price Target on Surging AWS and Retail Growth

Bank of America Securities analyst Justin Post is giving Amazon bulls another reason to cheer, maintaining a "Buy" rating and raising his price target from $275 to $298. The optimistic revision is driven by accelerated growth projections in both Amazon's cloud and retail divisions. Post expects Amazon's Q1 revenue and operating income to surpass Wall Street consensus, fueled by an anticipated $2 billion quarter-over-quarter increase in AWS revenue—double the growth other analysts predict. This AWS acceleration to 28% growth is largely attributed to a major $1.3 billion quarterly boost from Anthropic-related revenues. Additionally, BofA data indicates strong momentum in North American online retail spending due to faster delivery speeds and grocery traction. While acknowledging Amazon's massive $200 billion capital expenditure plan for 2026—tied to AI infrastructure and its expanded OpenAI deal—Post remains highly constructive, echoing CEO Andy Jassy's expectation that these massive AI investments will be monetized within 6 to 24 months.

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