Amazon.com, Inc. (NASDAQ:AMZN) stock’s buy rating was reaffirmed by the Stifel analyst while increasing the price target from $770 to $775 in a recent note published for investors. Amazon has increased its investment spending lately and the research analyst believes that this will lead to higher returns in the future.
Stifel analyst, Scott Devitt highlighted the recent announcements by the company about its activities in transportation and logistics arena, which shows the company’s intention to have another investment cycle shortly. However, at this point market is not sure about Amazon’s next step but analysts are predicting that any other investment cycle will squeeze the company margins in near to intermediate term.
Devitt is of the opinion that another investment cycle might squeeze the margins for the time being but in the long term, it will help them to expand the latter. Moreover, he further added in the report that enhanced logistics network will cut down Amazon’s delivery cost and the company can also consider providing logistics services to a third party as well.
Therefore, the research firm raised its price target for Amazon stock on the back of foreseeing growth in return on investment (ROI) in the long term, coming from the enhanced investment spending. Moreover, the research analyst is also optimistic about the company’s future outlook and believes that Amazon is currently well positioned.