AMZN Poised to Benefit from Market Share Gains, New Businesses, Analyst Says

Among the factors that are expected to boost Amazon's (AMZN) top-and-bottom-line growth this year are its market-share gains and its move into relatively new businesses, including groceries, pharmacy and home goods, according to Joseph Feldman, an analyst at Telsey. The latter firm is an investment bank and equity-research firm.

Feldman cut his price target on AMZN to $235 from $275 but kept an Outperform rating on the name.

AMZN's Positive Catalysts

Among the factors that will help AMZN gain "profitable market share" are its Prime program, its ties to small businesses, and the strength of its technology, Feldman asserted. In addition to groceries, pharmacy, and home goods, the conglomerate will benefit from expanding its fashion and logistics offerings, according to the analyst.

The growth of the company's highly profitable cloud-infrastructure and ad business will help it boost its bottom line, Feldman noted.

Challenges for AMZN

Tariffs could reduce demand for AMZN's consumer-facing products and raise its costs, Feldman warned.

And the company's meaningful exposure to China could be negative as the conflict between Washington and Beijing continues, he added.

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Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.