Jefferies’ $4,000 Amazon Stock Target Makes a Fatal Assumption

  • Jefferies Group revised its target for Amazon stock upward. It now has a very bullish forecast of $4,000 a share by the year 2023.
  • Amazon has remained a truly remarkable success story straight through the coronavirus pandemic and fastest equities crash in history.
  • But the 2023 price target, and a $2,800 target for next year, make a fatal assumption few analysts share as the economy shrinks.

Amazon (NASDAQ:AMZN) stock has enjoyed a meteoric rise while other companies stagger through the coronavirus pandemic and worldwide lockdowns. The online retailer was in a unique position to actually profit from people staying home en masse.

But will the growth continue?

Morgan Stanley believes Amazon stock has already priced in the company’s advantage in the pandemic economy. Its investment management arm recommends taking profits now.

Meanwhile, others such as billionaire investor Mark Cuban, expect a permanent boost to Amazon’s inflows. After the pandemic subsides, they expect consumers to stick with their new buying habits. In other words, they’ll continue restocking pantries through Amazon instead of driving to a local or chain grocery store. So Amazon stock will continue to rise.

Jefferies Group Targets $4,000 AMZN

Jefferies Group is among the AMZN bulls. The $44 billion Wall Street investment bank hiked its 12-month price target for Amazon stock Tuesday. Jefferies expects AMZN to trade at $2,800 per share by April 2021. That would be a 20% rally over Monday’s closing price of $2,328.12 per share.

Jefferies equity analyst Brent Thill said in a client note Tuesday:

We believe AMZN is a potential beneficiary of COVID-19, as consumers limit exposure to crowded places and order more in nascent categories like grocery, positively influencing long-term purchase behavior.

But over the longer term, Jefferies sees Amazon stock reaching $4,000 per share by 2023. The firm says by then Amazon’s cloud business will be its most valuable asset.

Although it’s currently…

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