Amazon.com (AMZN) shares probably are poised for gains through 2024 as headwinds dissipate, UBS Securities said Friday in a report.
Same-day and one-day Prime Delivery, e-commerce segment margin expansion and improving unit economics support the thesis for continued outperformance, UBS said.
Also, Amazon’s “cost to serve” decreased for 2023 for the first time since 2018, despite the company raising service levels, UBS said.
“Overhangs” such e-commerce deceleration in 2021, margin compression in 2022 and AWS deceleration in 2023 will mostly fade this year, UBS said.
The firm maintained its buy rating on the company’s stock and raised its 12-month price target to $198 from $180.
Amazon shares rose 7.9% in recent Friday trading.