BMO Lifts Amazon (AMZN) Price Target, Keeps Outperform Rating

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 12 Most Owned Stocks by Hedge Funds So Far in 2025. On July 22, BMO Capital increased its price target for Amazon.com, Inc. (NASDAQ:AMZN) from $233 to $270 while keeping an “Outperform” rating.

The firm sees strong potential for Amazon.com, Inc. (NASDAQ:AMZN) mainly because it expects growth in Amazon Web Services (AWS) in the second half of 2025. BMO believes that agentic capabilities are still underappreciated by the market. BMO analysts raised the firm’s AWS estimates as they expect these agentic capabilities to significantly improve efficiency.

Amazon.com, Inc.’s (NASDAQ:AMZN) extended Prime Day and foreign exchange factors led the financial firm to increase its forecast for the company’s 2025 Gross Merchandise Value (GMV) by 130 basis points. BMO’s proprietary channel checks showed mid-teens growth in GMV compared to the same four-day period last year. Average selling prices remained steady even with tariffs.

The research note also pointed out that Amazon.com, Inc.’s (NASDAQ:AMZN) same-day delivery coverage has increased 17%  compared to last year. This expansion makes it easier for customers to order more frequently and helps the company earn more free cash flow from its retail segment.

Amazon.com, Inc. (NASDAQ:AMZN) is a technology company that specializes in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.