Amazon (NASDAQ: AMZN) recently had a landmark quarter, with growth in profits and revenue above the company’s own forecasts. Amazon saw rising sales in all categories by 11% in Q2, beating analyst estimates.

With AI being the buzzword in 2023, Amazon sees huge growth opportunities in the generative AI field.

Because of that, stock market analysts across Wall Street raised their target price for AMZN stock for the next 12 months.

The average analyst target price sees a 22% gain

Analyst consensus at TipRanks is a ‘strong buy’ with an average target price of $171 for the next 12 months, which is 22% above the current price of $139 per share.

TipRanks analyst ratings. Source: Interactive Brokers Fundamentals Explorer

After Amazon crushed earnings, analysts lined up to update their target price and reiterate their buy rating.

UBS analyst Lloyd Walmsley wrote:

“Not only did we get a trifecta beat – retail revs, AWS revs and margins – but also the tone from management on the call was that there is more to come on retail margins and AWS acceleration.”

Walmsley sees new demand driven by generative AI for Amazon, which is why he raised his target price to $170 from $150, reiterating his buy rating.

Analysts at Citi also raised their target price to $167 from $145 with a buy rating. “With AWS growth stable and improving eCommerce operations, we believe Amazon is well positioned to deliver greater margin expansion,” the Citi analysts wrote.

AMZN stock technical analysis

After the drop to $83 in early 2023, the AMZN stock started its bull run. The price currently trades near a strong resistance point of $145. To push through, AMZN needs a strong catalyst. If the Q2 earnings report didn’t push through this level, it’s likely to come in the coming months.

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A break above this level opens the way to $176 within the next 12 months, which is in line with the average analyst price target of $171.

However, a failure to break the $145 level would open the way to a pullback to $126. This could present a good buying opportunity if you’re long-term bullish on Amazon.

AMZN stock price weekly chart. Source: Interactive Brokers Fundamentals Explorer
Amazon has returned 63% to investors year to date, outperforming the S&P 500’s 17% return.

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The post Wall Street sets Amazon stock price for the next 12 months appeared first on Finbold.

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Dennis is a business and financial writer, who had spent almost his entire life independently reporting on different business ventures with major impact on the US and global economy. Dennis places a special focus on examining tech stocks, biotech stocks all while investing a great part of his early hours to researching and writing on the companies in the US markets. Dennis has 15+ years of experience in financial markets.