Major Bank Ratings | China Merchants International: Raises Amazon Target Price to $292, Maintains "Buy" Rating

Glonghui, February 9th｜CMB International released a research report stating that Amazon announced its fourth quarter results last year, with revenue of $213.4 billion, representing a 12% year-on-year increase at constant exchange rates, which is 1 percentage point higher than both the bank's and the market's expectations; operating profit was $25 billion, an 18% year-on-year increase, exceeding the bank's and the market's expectations by 2% and 1% respectively. AWS revenue growth accelerated to 23.6% year-on-year, 2 percentage points higher than consensus expectations, mainly driven by the easing of supply constraints, although some constraints still remain. The bank raised its revenue forecasts for 2026 to 2027 by 2% to 3% to reflect better-than-expected AWS revenue growth prospects; at the same time, it lowered its operating profit forecasts by 2% to 4% to reflect the impact of depreciation from capital expenditures and investment in new businesses. The bank raised its target price by 9% to $292 and maintained a "Buy" rating.