Yahoo Finance’s call of the week is another bullish price hike on Amazon (AMZN). Credit Suisse maintained its outperform rating on the stock while lifting its price target to $1,050 from $900 per share. This implies shares will jump 16% from their closing price on Thursday.
Credit Suisse (CS) thinks Amazon’s ongoing investments in content, fulfillment centers and data centers will start to pay off. In a note to investors, the firm’s analysts wrote, “As far as we are concerned, this push to invest serves as positive demand indicators across its consumer and enterprise-facing businesses.” Credit Suisse also thinks the investments will help offset losses from shipping and that its cloud business, Amazon Web Services, which has become very important to Amazon’s future growth, will help drive revenue.
Several other analysts on Wall Street also think the stock still has room to run. A total of 12 firms have a price target of at least $1,000, with the highest call on the Street from Susquehanna Financial, which has a price target of $1,250. The stock has a total of 43 buy ratings, five neutral ratings and no sell ratings, according to Bloomberg.
Investors will be paying close attention to Amazon’s stock ahead of its scheduled earnings report on Thursday after the bell. Wall Street is expecting earnings per share of $1.13 on revenue of $35.30 billion. The stock has posted big gains in recent months. Shares are up about 20% since January 1, bringing its total gains in the past year to 42%.