Goldman Sachs added Amazon.com Inc. to its U.S. Conviction List of most-preferred stocks on October 1, signaling strong confidence in the company’s performance. Analyst Eric Sheridan reiterated a Buy rating and maintained a 12-month price target of $375, implying potential upside of more than 50% from the stock’s price at the time.
The bullish outlook came despite Amazon shares having fallen 13% from their all-time high. Goldman expects revenue to compound and operating margins to expand over multiple years.
The bank cited rising demand for Amazon’s cloud computing power, fueled by the AI revolution. It also pointed to improving retail profitability and growth in the advertising business.