Amazon stock target raised at Truist on expected beat and raise quarter
Investing.com -- Truist analysts raised their price target on Amazon (NASDAQ:AMZN) shares to $250 from $226 in a note Wednesday, maintaining a Buy rating on the stock.
The firm cited expectations for a second-quarter earnings beat and a potential guidance raise for the third quarter as its reason for raising its target for the stock.
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Ahead of Amazon’s results, Truist said it remains constructive on the stock, calling Amazon “a share gainer and a long-term winner across eCommerce, Advertising, Cloud and Logistics.”
“We expect AMZN to report stronger than expected 2Q25 results driven by a resilient NA consumer virtually unaffected by the macro or tariffs so far, and by favorable FX on a weakening US$,” wrote the analysts.
Higher order frequency and average selling prices (ASPs) are also contributing to growth, according to Truist’s analysis.
The firm now expects second-quarter revenue of $164.2 billion, up 11% year over year, which is ahead of consensus at $162 billion and at the high end of Amazon’s own guidance.
Truist also raised its North America revenue forecast to $99.6 billion, versus the consensus estimate of $97.2 billion. International revenue is forecast at $33.85 billion, slightly ahead of previous expectations, thanks to foreign exchange tailwinds.
Truist believes FX, initially expected to be a 10-basis-point headwind, may now turn into a modest tailwind, particularly helping Q3 results. On the bottom line, the firm expects operating income of $17.4 billion, representing a 10.6% margin and surpassing the $16.7 billion consensus.
“While the macro remains uncertain, we believe that sustaining 2Q trends into 3Q should lead to a guide that’s slightly above current consensus,” the analysts concluded.
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