Amazon shares are the way to go for 2025, according to TD Cowen. Analyst John Blackledge named the e-commerce giant a top large-cap pick for the new year. He also raised his price target on the stock by $25 to $265, which suggests upside of 15.1% over Wednesday’s close. Blackledge has a buy rating Amazon. “Amazon has several drivers that should yield robust global revenue growth with rising margins the next several years,” Blackledge wrote in a Thursday note to clients. For 2025 specifically, the analyst listed three drivers for shares that investors can expect: Continued operating margin expansion Faster revenue growth at Amazon Web Services Growing net cash, which creates options within capital allocation To be sure, Blackledge said slower-than-expected growth in e-commerce or the web services businesses can impact share performance. Increased regulatory risks or capital intensity can also weigh on the stock, he added. There is also a risk to his call, he said, “if top line demand within the eCommerce biz and/or AWS slows during a period of elevated investment. The bear case for AMZN would appear to be that heavy long-term investments could result in limited margin expansion over time; in addition, there could be risks if AMZN’s future ability to execute and continue to drive strong demand for its products and services globally were to deteriorate over time.” TD Cowen is in the majority on Wall Street, with the lion’s share of analysts polled by LSEG holding a buy-equivalent rating on the stock. The firm’s price target for Amazon is also well above average, per LSEG. Despite TD Cowen’s announcement, shares ticked 0.3% lower before the bell on Thursday. However, the megacap tech stock has surged more than 51% in 2024, meaning it has outperformed the broader market.
TD Cowen names Amazon a top pick for 2025, says stock has more room to run