Morgan Stanley upgrades Amazon to top pick and lifts price target to $350
Morgan Stanley kept an overweight rating on Amazon and raised its price target from $335 to $350, citing five catalysts including faster AWS growth, higher AWS margins, the Bedrock AI service, AI‑driven shopping and robotics. Analyst Brian Nowak expects AWS revenue to grow 47% year‑over‑year in 2027 and 42% in 2028, with operating margins of 42% and 44% respectively. The new target implies roughly 40% upside from the prior close of $250. Amazon’s shares rose more than 3% after the note was released.
Why it matters
The higher target suggests a potential 40% upside for investors, reflecting Morgan Stanley’s belief that the cited catalysts will boost Amazon’s earnings and valuation. The note also signals a bullish risk‑reward outlook with a 3:1 upside to downside ratio.
Key facts
- 1Morgan Stanley raised its price target on Amazon to $350 from $335. cnbc.com
- 2The new target implies about 40% upside from the prior close of $250. finance.yahoo.com
- 3Morgan Stanley expects AWS revenue to grow 47% YoY in 2027. cnbc.com
- 4Morgan Stanley expects AWS revenue to grow 42% YoY in 2028. benzinga.com
- 5AWS operating margins are projected at 42% in 2027 and 44% in 2028. finance.yahoo.com
- 6Capital spending is forecast at $355 billion in 2027 and $365 billion in 2028. finance.yahoo.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.