The firm cites accelerating cloud demand and better-than-expected Q2 operating income for the upgrade.
Wells Fargo increased its price target for Amazon (AMZN) to $313 from $312, maintaining an Overweight rating. The adjustment reflects expectations of strong Q2 performance driven by AWS growth and operating income above consensus estimates.
The new target is based on 30x the firm’s 2027 EPS estimate. While Q3 revenue guidance may fall slightly below street expectations due to a Prime Day timing shift, analysts anticipate positive revisions for AWS and overall operating income.
Separately, Amazon plans to raise at least $25 billion through an eight-part bond sale to fund its AI expansion. The move underscores the company’s commitment to scaling AI infrastructure amid competitive pressures.