UBS: Raises Amazon's target price to $224, raises earnings forecast per share for 2024 to 2026

UBS released a research report stating that Amazon will announce its second-quarter performance. In recent years, the market's focus has mainly been on the company's profit margin expansion. Looking ahead, UBS predicts that Amazon will adopt a more aggressive investment strategy, believing that capital expenditures on AWS will increase. The company will also strengthen its investment in the expansion of the grocery business and the deployment of the satellite internet service Project Kuiper. The bank expects the management to disclose more details on capital expenditures, which can help predict the future revenue growth potential of AWS. UBS maintains a "buy" rating on Amazon, raising the target price from $217 to $224. The valuation parameters have been moved forward to the third quarter of 2025 to the second quarter of 2026. Earnings per share forecasts for 2024 to 2026 have been raised by 4%, 5%, and 5%