KeyBanc Resumes Coverage of Amazon (AMZN) with Overweight Rating, $300 PT on Retail, Cloud Outlook

Amazon.com Inc. (NASDAQ:AMZN) is one of the stocks that should double in 3 years. On October 24, KeyBanc resumed coverage of Amazon.com with an Overweight rating and $300 price target. KeyBanc believes that the growth in the retail business is being driven by advertising revenue, which provides a clear path for grocery to become a much larger and significant part of the business over the medium term.

The firm also argues that investors have become too pessimistic about the Cloud business, which could show improving growth heading into 2026, and has created an attractive entry point for the share. KeyBanc pointed out that Amazon’s current valuation multiple is well below historical levels.

Amazon.com Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.

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.