AMZN Analysts Split After Earnings: TD Cowen Says Amazon Selloff Is ‘Overdone,’ Mizuho Raises Target

• BofA lowered its price target on Amazon to $317 from $320 while maintaining a ‘Buy’ rating, according to The Fly.
• UBS raised its price target on Amazon to $352 from $348, citing AWS’s growth outlook for fiscal 2027 and 2028, a potential $1 trillion business and a $578 billion backlog, The Fly reported.
• 42 of 60 analysts covering the stock rate it a ‘Buy,’ and 16 rate it a ‘Strong Buy,’ according to Koyfin data.

Amazon (AMZN) shares drew investor attention on Friday after multiple analysts revised their price targets following the company’s third-quarter results, with views split on its near-term performance and longer-term growth prospects.

TD Cowen lowered its price target to $340 from $350 but maintained a ‘Buy’ rating, calling the post-earnings selloff “overdone”, according to The Fly. The firm said Amazon’s revenue beat expectations as AWS outperformed a slight miss in advertising.

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AMZN shares traded 6.3% lower in premarket at the time of writing.

Forty-two of 60 analysts covering the stock rate it ‘Buy,’ and 16 rate the stock ‘Strong Buy,’ according to Koyfin data. Their 12-month price target ranges from $230 to $405, with an average of $332.41. 

Analysts Split On The Post-Earnings Selloff

Mizuho raised its price target to $335 from $330 while maintaining an ‘Outperform’ rating. The firm said AWS results were slightly softer than investors expected, as they had looked for quarter-over-quarter growth similar to the second quarter. Mizuho said this, combined with elevated investment and negative free cash flow, overshadowed AWS’s strong two-year outlook, according to The Fly.

Whereas, Baird lowered its price target on Amazon to $300 from $310 while maintaining an ‘Outperform’ rating. Analyst Colin Sebastian updated his model following mixed third-quarter results but recommended buying the pullback, The Fly reported.

Source: The Fly

Analysts Remain Positive On AWS’s Longer-Term Growth

BofA lowered its price target on Amazon to $317 from $320 while maintaining a ‘Buy’ rating, according to The Fly. The firm noted that AWS growth accelerated by two percentage points quarter over quarter to 39%, although investor expectations “were as high as 42%”. 

Despite this, BofA said Amazon has “strong AI positioning,” citing new enterprise contracts driving backlog growth, steady gains in custom silicon usage, chip sales and increased usage of Alexa for Shopping. The firm trimmed its sum-of-the-parts based price target amid recent AI-sector multiple compression, according to The Fly.

UBS raised its price target on Amazon to $352 from $348 while maintaining a ‘Buy’ rating, according to The Fly. The firm pointed to management’s outlook for AWS growth above 40% in fiscal 2027 and fiscal 2028, a potential $1 trillion business, and a $578 billion backlog as reasons for confidence in sustained acceleration, stronger margins, and upside to consensus estimates, according to The Fly.

How Retail Views AMZN

On Stocktwits, retail sentiment for AMZN shifted from ‘neutral’ to  ‘extremely bullish’ in the past 24 hours, with ‘extremely high’ message volumes. The ticker is trending number two at the time of writing. 

One user pointed to Amazon’s operating margin as evidence that the company’s investments are profitable, arguing that the returns outweigh the cost of debt.

Another user said they hoped Amazon shares would fall further so they could buy more shares for the long term.

AMZN shares have gained over 5% year-to-date.

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