While a lot of optimism persists on the Street with regards to Amazon.com Inc.’s (NASDAQ:AMZN) future, there has recently been an addition to the list of brokerages with four-digit-price-targets. Renowned brokerage Cantor Fitzgerald reckons that the e-commerce giant is very well poised to be a preference of the bulls, as it expects a price target of $1000 for the next one year. The brokerage used the 5-year DCF model with a Cumulative Annual Growth Rate of 17% to derive its four-digit-price-target
Analysts at Cantor Fitzgerald discussed a few positive developments, which include the growth of its Prime service members and Amazon Web Services. Moreover, higher margins and expected growth in the top line may aid to the company in future. Although the company’s current valuation seems to be on the higher side, the long run situation appears to be favorable, considering the potential.
Moreover, the growth of e-commerce for the first nine months of the current fiscal year has been one of the promising developments for Amazon. Given the fact that the Bellevue-based company has been leading the market lately, prospects seem bright. A research discussed in the thesis reckons the majority of users referring to the $390 billion company for any of their product queries.
Even the recent hype by Wal-Mart to enter the e-commerce does not seem to be having any near-term impact on Amazon’s current standing, the brokerage added. Should the stock prices rise above $930, it is highly likely that Mr. Jeff Bezos will become the second richest man in the world. Smart Stock News considers bright prospects of the company as justifiable for its bullish run.