Jefferies Sets $320 Amazon Target Calling AMZN A Top Pick

Wall Street firm Jefferies has bumped its price target on Amazon up to $320 while keeping a Buy rating on the stock. Amazon shares traded around $249.99 today, up over 1% on the session. The fresh target gives investors a clear figure as they weigh where the tech giant could head over the coming months.

The main driver behind the upgrade is valuation. Analyst Brent Thill noted that Amazon trades at around 12 times its expected earnings before interest, taxes, depreciation, and amortization for the next twelve months. That represents roughly a one third discount compared to competitors like Alphabet and Walmart. Because of this valuation gap, Jefferies sees the stock as a top choice among major cloud and tech providers.

Big spending on artificial intelligence infrastructure is another key reason for the bullish outlook. Jefferies expects Amazon's heavy investments in AI data centers to pay off well into the future, even if capital expenditure estimates rise later this year. Wall Street sentiment remains overwhelmingly positive, with 62 out of 65 analysts rating the stock a Buy or Strong Buy, while retail sentiment on social platforms has also flipped back to bullish.