Amazon closes at all-time high on analyst upgrade
Amazon stock reached a new all-time high Friday as a UBS analyst raised the online retailer’s rating and price target.
The Associated Press
NEW YORK — Shares of Amazon closed at an all-time high Friday as a UBS analyst raised the online retailer’s rating and price target, saying it has a chance to speed up revenue growth heading into the holiday season.
The spark: Eric Sheridan of UBS lifted Amazon to “Buy” from “Neutral” and increased its price target to $385 from $305.
The analysis: Sheridan said in a client note that Amazon should be able to speed up its revenue growth in the fourth quarter and beyond in part because it should benefit from the rollout of new video games and gaming consoles, such as Sony’s PlayStation 4 and Microsoft’s Xbox One, which are expected to launch in November.
The analyst said that Amazon is well-positioned going forward, as it has worked hard this year on bringing together its hardware and software through actions such as hardware launches, software improvements, streaming content additions and its Amazon Payments system.
Sheridan anticipates an in-line quarter for Amazon when it reports financial results Thursday. He noted that the near-term may be volatile for online businesses, given eBay’s comments this week about expectations for a sluggish holiday season for the U.S. online business and potential impact of the temporary government shutdown.
Share action: The stock closed up $18.16, or 5.8 percent, at $328.93 Friday.. Many technology-oriented companies traded higher Friday. Google’s strong third-quarter results sent its stock past $1,000 per share for the first time since it went public nine years ago. It closed at $1,011.41, up $122.61, or 13.8 percent.