Morgan Stanley Maintains Overweight Rating on Amazon (AMZN) Amid Fresh Grocery Expansion

Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best fundamental stocks to buy right now. Morgan Stanley reaffirmed its Overweight rating and $300 price target for Amazon.com, Inc. (NASDAQ:AMZN) on September 10, pointing to the company’s entry into the fresh grocery sector. According to Morgan Stanley, Amazon’s U.S. gross merchandise value may increase by about 120 basis points for every 1% of the market share it gains in this area.

Morgan Stanley states that Amazon.com, Inc. (NASDAQ:AMZN) has already established the logistics infrastructure required to enable its grocery growth. The firm also highlights how the fresh food initiative is positioned favorably by higher produce margins and minimum $25 basket criteria.

According to the firm’s analysis, Amazon’s fresh grocery sector is expected to be successful and contribute to the company’s earnings before interest and taxes (EBIT) dollar upside.

Amazon.com, Inc. (NASDAQ:AMZN) is a dominant American multinational technology company that operates in several industries, including e-commerce, cloud computing via Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence.

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