UBS predicts another strong quarter for Amazon . The bank maintained its buy rating on the e-commerce giant and lifted its 12-month price target to $279 per share from $271. The new forecast implies upside of 23% from Monday’s close. The target change comes ahead of Amazon’s third-quarter report. Analyst Stephen Ju made made several revisions to his Amazon estimates ahead of the release, including a modest increase to its e-commerce segment due to benefits from higher third-party seller inventory levels. The analyst sees this accompanied by likely margin expansion due to improving unit economics. He also cited the potential for high-margin revenue from Prime Video with ads, which he said should become a more meaningful contributor over time. AMZN YTD mountain AMZN YTD chart Ju also believes that Amazon Web Services growth could accelerate as headwinds such as capacity constraints ease. The company’s gross merchandise value and market share could also increase as Amazon expands its service levels by increasing the availability of its one- and same-day Prime delivery, Ju added. “Overall, we continue to see the potential for upside across Amazon’s business segments including e-commerce, cloud, advertising, and Kuiper / low earth orbit satellites,” the analyst wrote. “And while we get greater visibility into when those benefits could arrive, particularly on Kuiper, the overall uplift has yet to materialize.” Shares of Amazon have added 3% this year. Ju said that Amazon’s relative underperformance this year has opened up a good buying opportunity. “In our view, with AMZN shares otherwise having languished at +4% YTD (relative to its Internet megacap peers) and with much of the benefits of its investments / CapEx across all of e-commerce, AWS, content / advertising, and lastly Kuiper still to be realized, it remains a coiled spring,” he wrote. “Therefore as revenue begins to show up more meaningfully, the subsequent upward revisions to operating profit and FCF dollars should arrive at a greater magnitude vs its peers.” Most analysts are bullish Amazon. LSEG data shows that 71 of the 72 who cover the stock rate it a buy or strong buy. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
