UBS analyst Eric Sheridan raised his price target for Amazon.com to $1,760 and keeps a Buy rating on the shares. The stock closed yesterday up $6.86 to $1,551.86. Amazon shares, despite rallying 30% year-to-date, present investors with “multiple long-tailed secular growth narratives,” Sheridan tells investors in a research note titled “Confidence In the Flywheel Continues to Build.” The analyst says that while traditional valuation metrics like forward price-to-earnings has been a struggle for investors, he continues to point to Amazon’s approach of reinvesting gross profit dollar growth to capitalize on future growth areas to disrupt consumer and enterprise end markets. His work indicates increased penetration of the Prime customer, especially in international, as well as new category expansion, such as Private Label and groceries.
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