Two major banks recently slashed their price targets on Amazon (AMZN) stock, but both banks remain bullish on the tech giant’s overall outlook, Schwab Network reported.
Mizuho’s Take on AMZN Stock
The Japanese bank lowered its price target on AMZN to $255 from $285 but kept an Outperform rating on the shares.
A customer entering an internet retail store, illustrating the convenience of online shopping.
About 50% of the customers of AMZN’s cloud unit could reduce the amounts that they spend on its offerings over the next few quarters as they contemplate the impact of tariffs, Mizuho warned. However, the bank is still upbeat on the longer-term outlook of the firm’s cloud business.
Further, AMZN has the strength to outlast and overcome the negative impact of tariffs, Mizuho stated.
Bank of America’s Take on AMZN Stock
The bank cut its price target on the shares to $225 from $257 but maintained a Buy rating on the name.
Warning that AMZN faces “a potential new ballgame for supply chains and costs” due to higher tariffs, the bank expects the costs of the company’s retail unit to climb meaningfully, assuming that tariffs remain at their current levels. However, the bank says that Amazon’s suppliers can help it reduce its costs.
Like Mizuho, Bank of America believes that Amazon’s cloud business will face challenges going forward.
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This article is originally published at Insider Monkey.
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