BMO Capital analyst Daniel Salmon lowered the price target on Amazon.com Inc. to $3,600 from $4,100 but reiterated an Outperform rating on the shares. The price target implies an upside of 29 percent.
The analyst is also reducing his FY22 EPS view to $42.99 from $65.04.
The revision reflects his expectations of lower online stores and third-party seller revenues in 2022 and 2023, due to the ongoing supply constraints both domestically and internationally, and to better reflect tough comps, along with lower margins in 2022 and 2023 to better reflect ongoing investments in the fulfillment network.
Salmon maintains, however, that AWS should see strong demand post-COVID-19 while noting that Amazon continues to lead the rise of “Retail Media.”
By Anusuya Lahiri
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