Amazon (AMZN -0.29%) stock didn't have the most auspicious start in 2024, but investors seemed to be coming back to the e-commerce giant on Monday.
An investment bank launched coverage of the stock with a positive analyst note. This was reinforced by a media report highlighting the generally very bullish prognosticator view of the company. As a result, Amazon beat the S&P 500 index today with a nearly 3% price gain.
Another analyst joins the bull stampede for Amazon
Before market open, BMO Capital's Brian Pitz initiated coverage of Amazon Monday with an outperform (buy) recommendation at a price target of $200 per share. That's not only 34% above the shares' current level, if met it would represent Amazon's all-time high price, adjusted for a series of stock splits.
In his research note, Pitz cited the performance of the company's powerful Amazon Web Services, writing that the business unit should continue to be a leader in its field. As for Amazon's sprawling retail operations, these should remain competitive with the company's expansion of its compelling same-day delivery services.
Also Monday morning, Bloomberg published an article highlighting the fact that analysts are overwhelmingly positive on the company. According to the news agency's findings, a whopping 97% of prognosticators tracking the stock recommend buying Amazon shares. Among these bulls are analysts from Bank of America, Goldman Sachs, and JPMorgan Chase.
Multi-part harmony
While analyst recommendations don't necessarily make or break a stock, those from the most prominent researchers do influence sentiment. This is particularly true if their outlooks are almost entirely in harmony, as in the case for Amazon just now.
