CITIC International lowered Amazon's target price by 8% to $247, reiterating a "Buy" recommendation

According to the research report from China Merchants Bank International, Amazon (AMZN.US) is expected to see a year-on-year revenue increase of 8.6% in the first quarter of 2025, aligning with the bank's and market expectations, while the total operating profit is expected to rise by 20% year-on-year, exceeding the bank's and market expectations by 2% and 5%, respectively, mainly due to improved operational efficiency leading to better-than-expected operating profit margins for Amazon Web Services (AWS). The bank has revised its revenue and operating profit forecasts for 2025 to 2027 down by 0.5% to 0.8% and 3.2% to 5.1%, respectively, to reflect increased spending on the satellite project Kuiper, and has lowered the target price from the original $268 by 8% to $247.

The bank expects the group's operating profit in 2025 to increase by 18% year-on-year, benefiting from optimized service costs and improved economies of scale, which will be a key factor driving the stock price throughout the year; maintaining a "Buy" rating