Loop Capital reiterated a “Buy” rating on Amazon (NASDAQ: AMZN) with a $360 price target on April 15, pointing to the company’s newly announced agreement to acquire Globalstar, an American satellite operator.
Looking ahead, analysts believe a potential SpaceX IPO could also support Amazon’s satellite broadband ambitions by highlighting the broader value of space-based connectivity.
Furthermore, Loop Capital highlighted revenue contributions from artificial intelligence (AI) chips and services, saying they reinforce the view that Amazon Web Services (AWS) is poised for continued growth.
Roth Capital endorses Amazon following Globalstar announcements
Amazon also received a vote of confidence from Roth Capital on April 14, just after it announced its agreement to acquire Globalstar.
Specifically, the investment bank reiterated a “Buy” rating, with a $285 Amazon stock price target, which suggests a nearly 15% upside from the current price of $249.
In the research note, Roth said the acquisition will not only “meaningfully de-risk” Amazon’s access to spectrum rights but also validate its ability to execute large-scale deployments.
Amazon’s long-term position
The firm also acknowledged that it is entering a capital-intensive “catch-up phase” characterized by the highest levels of execution risk.
Nonetheless, analysts see the Globalstar deal as a key strategic moment that will strengthen Amazon’s long-term positioning.
Indeed, the note stated that the transaction could unlock a “massive” opportunity at the intersection of connectivity and cloud services.
What this suggests is that the e-commerce giant is laying the groundwork for a broader integrated platform spanning both infrastructure and digital services.
Wall Street sees Amazon as a ‘Strong Buy’
As of the time of writing, the average Amazon stock price target for the next 12 months is $284.65, according to 45 Wall Street analyses over the past 90 days available on TipRanks.
A total of 42 analysts recommend buying, while only three suggest holding. With no sell recommendations, the stock enjoys a “Strong Buy” rating.
Featured image via Shutterstock
Leave a Reply
You must be logged in to post a comment.