Amazon stock isn’t necessarily cheap, Jeffries said, but it offers a way to get exposure to artificial intelligence data centers and retail investment themes at a much lower price than Walmart or Alphabet. The investment firm has a buy rating on the e-commerce giant. It also has a price target of $320, implying a 29% upside from Tuesday’s closing price. Shares rose 3% Wednesday following Jeffries’ call. Amazon’s valuation of about 12 times earnings before interest, taxes, depreciation and amortization makes it cheaper than comparable retail and technology businesses, Jefferies said. “At approximately 12x (next 12-month) EV/EBITDA, AMZN trades at a (1/3) discount to 18x GOOGL 17x/WMT 19x, making it a top-tier stock among hyperscalers,” analyst Brent Till said in a note to clients on Monday. Amazon is Walmart’s largest retail competitor, as well as its most comparable rival in the cloud technology industry. The analyst added that now is a particularly good time to add Amazon stock to your portfolio. Stocks have risen modestly over the past three months, “just making an already attractive stock cheaper,” Till wrote. He also noted that Amazon should accelerate its AI-related data center plans soon, especially if it raises its capital spending outlook this year. “Our experts believe the current buildup is unprecedented and that (Amazon’s capital spending and full-year free cash flow estimates) may still be underestimated,” Till said in a note. Of the 69 analysts covering Amazon, 65 rate the stock as a “buy” or “strong buy,” and four rate it a hold, according to LSEG data. The stock has increased 13% since the beginning of the year, lagging the S&P 500’s 21% rise in the same period.
