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Evercore Lists Amazon's USPs - Shipping Elasticity, Brand Advertising, Grocery Delivery, Cheap Valuation

  • Analysts led by Mark Mahaney at Evercore ISI reiterated their Outperform rating on Amazon.com Inc (NASDAQ: AMZN) with a target price on the stock of $4,300, implying more than 30% upside.

  • Amazon remains the investment bank advisory group's top mega-cap long holding. Mahaney and his team highlight four underappreciated elements of the company.

  • Firstly, Amazon's recent investment in its distribution capacity drove greater consumer demand, also known as "shipping elasticity." Mahaney sees the potential for upside to the Street's Amazon Retail Revenue estimates.

  • Secondly, the market undervalued Amazon's opportunity in brand advertising free of privacy-related advertising headwinds. Amazon reported $31.2 billion in ad sales in 2021, scoring 32% growth Y/Y, beating Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube. Merchants can advertise their products in Amazon platform search results. Amazon's new brand advertising initiatives with the NFL and IMDb can benefit ad sales growth.

  • Thirdly, Amazon's push into the grocery delivery market for online retail was highly attractive. Its new Amazon Fresh stores and their "walkout" technology "could well be a grocery story game-changer."

  • Fourthly, it was just how cheap the shares are, statistically.

  • Price Action: AMZN shares traded higher by 0.22% at $3,280.19 on the last check Friday.

Latest Ratings for AMZN

Mar 2022

Deutsche Bank

Initiates Coverage On

Buy

Feb 2022

Tigress Financial

Maintains

Buy

Feb 2022

Credit Suisse

Maintains

Outperform

View More Analyst Ratings for AMZN

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