Amazon.com Could Rally to $4,700 in 2022

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Amazon.com (AMZN) could be a $4,700 stock in 2022.

Thanks to accelerating revenue growth, and higher margins, analysts at UBS now has a buy rating and a 12-month price target of $4,700 on the stock.

“We expect Amazon shares to re-rate ahead of 2H22 when we see revenue growth and higher margins driving estimate revisions and multiple expansion,” analysts said, as quoted by Barron’s.  “They noted that Amazon has ‘multiple levers’ to improve margins, including advertising, Amazon Web Services (AWS) and price rises. Slowing capacity builds and higher pricing could lead to better-than-expected margin inflection in the second half of next year.”

Here’s hoping it actually happens.

In its most recent quarter, the company missed on earnings and revenue, and provided disappointing Q4 guidance ahead of the holiday season.

EPS came in at $6.12, which missed expectations for $8.92.  Revenue of $110.81 billion missed expectations for $111.6 billion.  All as it contends with slowing sales, as some consumers return to brick and mortar stores amid supply chain issues.

For the fourth quarter, Amazon sees sales between $130 billion and $140 billion, or growth of between 4% and 12%. Analysts were hoping for 13.2% year over year growth to $142.1 billion.

The full earnings press release can be found here.