Citi analyst Ronald Josey assumed coverage of Amazon.com Inc. with a Buy rating and price target of $4,100, down from $4,115 (29.7 percent upside).
Josey also added the shares to the firm’s Focus List, given its lead eCommerce, Online Advertising, and Cloud and operational efficiencies at its new Fulfillment Centers, physical retail location closures, and the lapping of COVID-related labor shortages.
The analyst’s top picks in the internet sector are Amazon, Snap Inc., Airbnb Inc., and DoorDash Inc., all leaders in their respective categories.
The broader sector is “healthy” as consumer engagement online continues to be more immersive and grow, says Josey, who sees “multiple vectors ahead for sustained growth.”
Josey also acknowledged heightened volatility over the new normal, the longer-term impact of Apple Inc.’s ATT changes, greater regulatory scrutiny, and increasing macro fears.
