Amazon Remains Top FANG Stock for BofA
2022.04.22 19:46
By Sam Boughedda
Investing.com — Amazon.com Inc (NASDAQ:AMZN) remains BofA Securities’ top FANG, stock analyst Justin Post said in a note to investors Friday.
Ahead of Amazon’s first-quarter earnings next week, Thursday, April 28, the analyst said they are expecting some pressures from elevated transportation and gas costs and wage inflation.
As a result, BofA adjusted 2022 estimates for “increasingly difficult FX headwinds, and the gas cost impact on shipping that may be somewhat offset by a 5% hike on FBA fees.”
Nevertheless, Post reiterated a Buy rating on the stock, explaining that while inflation clouds the 2022 margin recovery story, Amazon remains its top FANG stock.
Even so, BofA lowered its price target on the stock to $4,225 from $4,450 to reflect lower revenue estimates and multiple compressions in the cloud sector.
Amazon stock is down 1.8% Friday.
