Amazon (NASDAQ: AMZN) stock didn't have the most auspicious start in 2024, but investors seemed to be coming back to the e-commerce giant on Monday.
An investment bank launched coverage of the stock with a positive analyst note. This was reinforced by a media report highlighting the generally very bullish prognosticator view of the company. As a result, Amazon beat the S&P 500 index today with a nearly 3% price gain.
Another analyst joins the bull stampede for Amazon
Before market open, BMO Capital's Brian Pitz initiated coverage of Amazon Monday with an outperform (buy) recommendation at a price target of $200 per share. That's not only 34% above the shares' current level, if met it would represent Amazon's all-time high price, adjusted for a series of stock splits.
In his research note, Pitz cited the performance of the company's powerful Amazon Web Services, writing that the business unit should continue to be a leader in its field. As for Amazon's sprawling retail operations, these should remain competitive with the company's expansion of its compelling same-day delivery services.
Also Monday morning, Bloomberg published an article highlighting the fact that analysts are overwhelmingly positive on the company. According to the news agency's findings, a whopping 97% of prognosticators tracking the stock recommend buying Amazon shares. Among these bulls are analysts from Bank of America, Goldman Sachs, and JPMorgan Chase.
Multi-part harmony
While analyst recommendations don't necessarily make or break a stock, those from the most prominent researchers do influence sentiment. This is particularly true if their outlooks are almost entirely in harmony, as in the case for Amazon just now.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Bank of America, Goldman Sachs Group, and JPMorgan Chase. The Motley Fool has a disclosure policy.
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