Phillip Securities moved Amazon.com (NASDAQ: AMZN) from an Accumulate to a Buy rating on Monday, lifting its target price to $330 from $320. The new target sits in line with the broader Wall Street consensus, which sees an average upside of 36% and a spread of $230 to $405. With the shares trading around $240.35, the brokerage views Amazon as undervalued relative to its earnings outlook.
Analyst Helena Wang raised the firm’s fiscal‑2027 revenue forecast by 2% and net‑income estimate by 3%, citing robust growth in Amazon Web Services. Amazon’s last twelve‑month revenue climbed 15% to $797 billion and its return on equity stands at 27%. Phillip also bumped the 2027 capital‑expenditure projection by 3%, noting that the company’s aggressive investment in infrastructure is underpinned by strong demand visibility.
The upgrade comes as Amazon continues to expand its AI footprint, leveraging a model‑agnostic approach and its full‑stack capabilities—including custom chips and partnerships with large‑language‑model providers. The stock trades at a price‑to‑earnings ratio of 19.2 and a PEG of 0.26, signalling significant value for investors.
In its latest earnings, Amazon reported third‑quarter revenue of $201.9 billion, in line with expectations, and operating income of $28.1 billion, a 7.1% beat that set a new record operating margin of 13.9%. However, AWS growth of 39% fell short of buy‑side forecasts, prompting Piper Sandler to reaffirm an Overweight stance with a $320 target and TD Cowen to maintain a Buy rating while trimming its price objective.
Phillip Securities believes the company’s continued investment in infrastructure will strengthen its market leadership and erect barriers to entry for competitors, positioning Amazon for long‑term growth.