Amazon (NASDAQ: AMZN) stock is drawing renewed attention from analysts after Ken Gawrelski raised his price target, pointing to meaningful upside over the next 12 months.
The Wells Fargo analyst lifted his target on Amazon to $305 from $304, while maintaining an Overweight rating on the shares. Based on the current price of $208.51, the revised target implies approximately 46.5% upside.
AWS growth and stable CapEx support bullish outlook
According to Gawrelski, the investment case is increasingly supported by improving fundamentals, particularly within Amazon’s cloud segment.
The analyst highlighted that Amazon’s 2026 capital expenditure guidance remains unchanged, while revenue growth in Amazon Web Services is accelerating. This combination is expected to drive positive revisions to free cash flow, marking the first upward shift in four quarters.
At the same time, Wells Fargo continues to view Amazon as its top Internet pick for 2026, citing a mix of topline acceleration and valuation support.
Amazon valuation remains attractive relative to growth
From a valuation perspective, Gawrelski pointed to Amazon trading at roughly 21 times its projected 2027 GAAP price-to-earnings ratio, a level the firm considers attractive given the company’s growth trajectory.
The view suggests that despite recent gains, Amazon’s current pricing does not fully reflect the expected improvement in earnings and cash flow.
The latest update builds on a series of positive calls from Wall Street. Earlier this week, Justin Post of Bank of America Securities reiterated a Buy rating on Amazon, reinforcing the broader bullish sentiment surrounding the stock.
At the time of publication, Amazon shares were trading at $208.51, holding above the key $200 level.
Featured image via Pixabay / Yamu_Jay
