This article first appeared on GuruFocus.
Amazon.com (NASDAQ:AMZN) is drawing a higher valuation call from Evercore ISI as analyst Mark Mahaney lifted his 12-month price target to $355 from $315, citing several retail trends that could support the shares.
AMZN shares rose 3% on Friday following the news.
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Mahaney kept a Buy rating, pointing to findings from Evercore ISI's latest U.S. online retail survey. The research found that 57% of Alexa AI users bought products they had not previously known about, while Amazon's retail reach stood at 92%, maintaining a 34-point lead over Walmart.
The analyst also cited improving adoption of same-day delivery, with regular usage reaching 49%. Prime members using the service spend 3.1 times more than non-Prime users, while 46% of respondents exposed to Amazon's fresh-grocery checkout feature added perishable items to their carts.
Evercore's higher target suggests room for further gains, although Amazon's market penetration has eased from last year's 95%.