This Firm Just Gave Amazon the Highest Price Target on Wall Street

Morgan Stanley has not only reiterated an “overweight” rating on e-commerce giant Amazon, but has also slapped the highest price target on Wall Street on tits shares.

The firm has increased its price target on Amazon from $1,850 to $2,500 a share, the highest out of 41 analysts covering the stock according to FactSet.

“We have increasing confidence that Amazon’s rapidly growing, increasingly large, high margin revenue streams (advertising, AWS, subscriptions) will drive higher profitability and continued upward estimate revisions,” said Morgan Stanley analyst Brian Nowak.

According to Nowak, Amazon outperformed the top end of its operating profit guidance by an average of 60 percent during the past three quarterly reports and he believes the company’s high profit margin businesses such as Amazon Web Services cloud computing, subscriptions and advertising will generate nearly $45 billion in profit by 2020 from an estimated $25 billion this year.

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.