Mizuho cuts Amazon price target, sees downward revision cycle - InvestingChannel

Mizuho cuts Amazon price target, sees downward revision cycle

Mizuho analyst James Lee lowered the firm’s price target on Amazon.com to $155 from $197.50 and keeps a Buy rating on the shares. The analyst’s recent investor calls on advertising and cloud computing indicate downside to consensus estimates. Advertising channel checks show continued mix shift to offline/services, Lee tells investors in a research note. He says that while Amazon.com’s Q2 revenue growth appears in-line, consensus revenue growth rates excluding Web Services for the second half of 2022 “appear aggressive.” And the fiscal 2023 consensus estimate for cloud revenue growth of 26% appears at risk, as Mizuho’s chief investment officer survey shows that spending growth could slow by nine points on a shallow recession scenario, writes Lee. He says that despite an attractive valuation, Amazon shares lack short-term catalysts due to a likely downward revision cycle.

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