JPMorgan sees strong consumer powering continued retail sales growth.
In its note ahead of Amazon’s earnings report, JPMorgan said it expect strong sales growth for the ecommerce giant despite an uncertain macroeconomic backdrop. That outlook is powered by continued resilience displayed by US consumers, who have helped prop up corporate earnings in the face of rising interest rates.
“AMZN remains our Best Idea & we continue to expect AWS acceleration in 2H23, Retail growth uptick, healthy NA margin expansion, & Y/Y decline in total capex, all of which should drive significant FCF inflection this year,” the analysts wrote in their note.
JPMorgan has rated Amazon a “Buy” with $180 price target, representing potential upside of 48% from Wednesday’s closing price.
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