Wedbush raised its price target for Amazon (NASDAQ:AMZN) to $210 from $180, maintaining an Outperform rating on the stock in a note to clients Thursday.
Analysts at Wedbush said Amazon is on pace to generate $46.5 billion of advertising revenue in 2023, and they think "the company is well positioned to continue taking share of global digital advertising spending over a multi-year period."
Furthermore, after taking a closer look at the scope of Amazon's advertising platform and evaluating the direction of the tech giant's recent product announcements, Wedbush believes Amazon's advertising opportunity remains early in its development.
"As the year comes to a close, we are increasingly optimistic about Amazon’s advertising opportunity heading into 2024 supported by: (1) secular tailwinds favoring retail media, (2) growth in CTV and video ad formats within Amazon’s properties, (3) growth of off-platform ad sales, and (4) greater adoption of Amazon’s advertising products among non-endemic advertisers," the analysts explained.
Amazon remains Wedbush's top pick across its internet coverage.