Amazon.com Inc. (NASDAQ:AMZN) is one of the best ESG stocks to buy now according to hedge funds. On September 11, Jefferies analyst James Heaney reaffirmed a Buy rating on Amazon with a $265 price target. The call followed a series of bullish updates, including Bank of America’s Justin Post, who maintained a Buy rating the same day with a $272 target, and Morgan Stanley’s Brian Nowak, who on September 8 restated his Buy rating with a $300 target.
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Nowak’s target is closer to the consensus high of $306, and the higher valuation reflects particular confidence in Amazon’s push into the $600 billion U.S. fresh and perishable grocery market. The analyst sees this initiative as a potential catalyst for accelerating U.S. Gross Merchandise Volume growth, even with modest market share gains.
He believes that Amazon.com Inc.’s logistics and fulfillment network provides it with a strong base to scale delivery services very efficiently. On the other hand, the higher-margin grocery baskets and stronger basket economics add to the profitability case. Taken together, these developments underpin the bullish stance and reinforce Amazon’s long-term growth potential.
In an effort to expand its global footprint, Amazon.com Inc. announced the acquisition of a stake in Colombian delivery company Rappi Inc., as reported by Bloomberg on September 9. The report also states that the deal is structured in a way that allows Amazon to acquire up to 12% of Rappi based on specific milestones. This deal empowers Amazon to compete much more effectively in the Latin American quick commerce space.
Amazon.com Inc. operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data centers and cloud computing networks.
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This article is originally published at Insider Monkey.
