Jefferies has reaffirmed a Buy rating on Amazon.com (NASDAQ:AMZN) and maintained a $300.00 price objective, aligning with the prevailing analyst consensus labelled as "Strong Buy" and falling inside the broader range of analyst targets between $230 and $360.
The firm argues that Amazon's current enterprise valuation - 13x next-twelve-months EV/EBITDA by Jefferies' calculation - is inexpensive relative to signs of AWS re-acceleration. Jefferies says that multiple is 6 turns below the company's 10-year average and 8 turns below Walmart, creating what it views as a valuation opportunity if AWS growth materializes. InvestingPro data referenced in the analysis shows Amazon's EV/EBITDA at 18.79 and a PEG ratio of 0.65, metrics Jefferies interprets as indicating the stock is undervalued relative to its growth prospects.
Central to Jefferies' positive view is the AWS backlog, which the firm treats as a leading indicator for potential acceleration. Jefferies projects that AWS could approach mid-20s percentage growth in the fourth quarter, citing several supporting points: the easiest year-over-year comparison of the year for Q4, October bookings that exceeded the total bookings recorded in the third quarter, and favorable findings from channel checks and surveys.
Those AWS dynamics are presented alongside Amazon's broader top-line scale. The company generated $691.33 billion in revenue over the last twelve months, representing 11.48% year-over-year growth. Jefferies also highlights resilient holiday sales and expects that ongoing efficiency initiatives across the company should provide upside to operating income. The firm's $300 price target implies approximately 25% upside on a sum-of-the-parts valuation basis.
Market performance since the third-quarter results shows Amazon's stock up 7%, a rise that has lagged Google parent Alphabet's 23% gain over the same interval but outpaced a broader comparison index that fell 2% in that period.
Other recent analyst activity reflects continued positive sentiment toward Amazon's strategic trajectory and AWS potential. Citizens increased its price target to $315, citing higher revenue projections tied to Anthropic, a partner that runs on AWS. Wedbush reiterated an Outperform rating with a $340 target, emphasizing AWS' potential influence on future financials. Benchmark maintained a Buy rating and a $295 target while calling out the company's upcoming fourth-quarter earnings report and prior strong AWS growth. Evercore ISI kept an Outperform rating with a $335 target and pointed to progress in Amazon's grocery strategy. KeyBanc lifted its price target to $308, driven by higher revenue and earnings forecasts and an expectation of significant AWS growth.
Collectively, these analyst actions underscore a market narrative focused on AWS as the primary catalyst for upside, complemented by operational efficiency and holiday demand. Jefferies' reiteration of Buy and the $300 target sits within that broader tapestry of bullish analyst commentary and upward price-target revisions.
Summary
Jefferies reiterated a Buy rating on Amazon with a $300 price target, citing early signs of AWS re-acceleration, favorable AWS backlog dynamics, and valuation that the firm deems too low relative to historical and peer multiples. Multiple other brokers have similarly adjusted targets or reiterated positive ratings based on AWS momentum and corporate initiatives.