Amazon (AMZN) was in focus on Monday as investment firm Oppenheimer raised its price target on the tech giant, citing the belief there will be “significant upside” from Amazon Web Services for the foreseeable future.
AWS is set to double capacity through 2027, with “at least” 1 gigawatt worth of capacity added in the fourth quarter, Oppenheimer analyst Jason Helfstein said. As such, he upped his price target on Amazon to $305 from $290.
“Our analysis suggests ~$3B historical revenue per incremental [gigawatt],” Helfstein wrote. “Applying this to the forward GW forecast with pricing discounts suggests 14%/22% upside to Street 2026/2027 AWS revenue, including 3% upside in 4Q.”
Separately, with AWS re:Invent set to kick off today, Helfstein said there could be additional announcements that could be impactful.
