BUZZ - Morgan Stanley names Amazon as "top pick" and raises target price; Amazon shares rise in response

October 19 - ** Ahead of Monday's session, Amazon (AMZN.O) shares rose 2% to $255 after Morgan Stanley named the e-commerce and cloud computing company its “top pick,” citing the growth of Amazon Web Services (AWS) and five major catalysts driving its outperformance.

** The brokerage maintained its “Overweight” rating and raised its price target by $15 to $350.00, implying a 40% upside from the previous trading day’s closing price.

** Morgan Stanley analyst Brian Nowak said the catalysts include sustained robust growth in AWS, better-than-expected AWS margins, a clearer outlook for the Bedrock business, Amazon’s position in the agency e-commerce sector, and the upside potential from robotics technology.

** Nowak raised his 2028 earnings per share (EPS) estimate to about $16.50 (an increase of 7% from his previous forecast), adding that AWS could become a “Rule of 90” business between 2027 and 2028.

** According to LSEG data, the stock’s recent price-to-earnings ratio is 23 times expected earnings, while the average forward P/E over the past five years was 44, suggesting it may be undervalued; the share price is about 13% below its all-time intraday high of $287.20 set on August 3, 2026.

** As of Friday’s close, the stock is up 8.3% year-to-date, while the Nasdaq index is up 12.5% over the same period .IXIC

** Of 64 analysts, 62 rate the stock as “Strong Buy” or “Buy,” and 2 recommend “Hold”; the median price target is $325.

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