This article first appeared on GuruFocus.
Amazon (NASDAQ:AMZN) received a higher price target from TD Cowen after its latest results showed faster cloud growth and stronger operating performance.
TD Cowen lifted its target to $350 from $340 and kept a Buy rating on Amazon. The firm said second-quarter revenue and operating income were ahead of consensus estimates by 2% and 11%, respectively, excluding one-time items.
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Amazon's cloud unit, AWS, was a key factor behind the revised view. AWS revenue growth accelerated to 37% year over year, while the company's chips and artificial intelligence business reached a run rate above $25 billion. Amazon's backlog also increased to $496 billion.
Amazon's third-quarter revenue outlook was slightly below expectations, although operating income guidance came in about 6% above consensus at the upper end. The company also raised its 2026 capital spending forecast to roughly $220 billion.
TD Cowen raised its Amazon revenue estimates by an average of 4.5% annually from 2027 through 2031. AWS revenue forecasts increased by about 18% annually over the same period, while operating income estimates rose by roughly 17% on average.