Swiss Bank Remains Upbeat on Amazon.com, Inc. (AMZN) Stock

Swiss bank UBS on Friday tweaked its price target on Amazon.com Inc (AMZN) stock to $249 from $253 but kept a Buy rating on the shares,

The bank indicated that AMZN stock should be bought on its current weakness.

Estimates for the E-Commerce Business Have Probably Bottomed, UBS Says

Amazon's guidance for a 5% increase in the e-commerce unit's gross merchandise volume during the current quarter, excluding foreign exchange fluctuations, likely accounts for all the macroeconomic risks that the business is facing, UBS believes.

Similarly, estimates for the e-commerce unit have probably bottomed, creating a good opportunity to buy the shares at a discount, UBS asserted.

Amazon's Long-Term, Positive Catalysts

Amazon.com Inc (AMZN) should benefit from the continued transition from brick-and-mortar retail to e-commerce. Further, the tech giant should keep getting a lift from the transition from on-premise computing to the cloud, UBS contended.

In light of these strong, positive catalysts, UBS believes that the conglomerate can grow a great deal over the longer term.

The Recent Price Action of Amazon.com Inc (AMZN) Stock

In the last month, the stock has gained 7%, while the shares have fallen 21% in the last three months.

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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