BofA Securities Affirms Buy Rating on Amazon (AMZN), Hikes Price Target
June 2, 2025
On June 2, BofA Securities analysts increased the price target for Amazon.com, Inc. (NASDAQ:AMZN) stock to $248 from $230 and maintained a ‘Buy’ rating. The price hike is in response to the company’s substantial progress in robotics and artificial intelligence.
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According to analysts, the company’s robotic capabilities have increased significantly since the acquisition of Kiva in 2012. Amazon launched its 12th-generation automated fulfillment center late last year. It has also introduced eight new robots, adding over 750,000 robot assists to its arsenal.
The company has designed the robots to enhance delivery station efficiencies, given their ability to address 75% of customer needs. Enhanced automation at the fulfillment centers is the catalyst behind Amazon’s revenue growth of over 10.08% over the past 12 months.
BofA Securities analysts expect high levels of automation at fulfillment centers to help Amazon reduce its reliance on human labor. In addition, it should lead to improved order accuracy and boost warehouse efficiency.
The analysts also expect the company’s retail margin to reach 11% owing to improvements in advertising, third-party services, and subscriptions. Integrating robots and drones to enhance the sorting and shipping of items is also expected to contribute about two percentage points to long-term retail margins.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None.
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