Phillip Capital upgraded Amazon to Buy on Monday and raised its price target to $330, implying 37% upside. According to Sina Finance, the firm said Amazon’s substantial AI investments would generate strong returns, citing its model-agnostic approach and full-stack technology capabilities.
Amazon shares came under selling pressure on Thursday after its third-quarter report. The company maintained its full-year guidance and said capital expenditure would rise sharply next year; the report also showed negative free cash flow, with an outflow of $42.2 billion.
In a client note, Phillip Capital analyst Wang Hailun wrote that clear and considerable demand prospects support continued infrastructure investment despite the pressure that aggressive capital expenditure puts on free cash flow. She said the investments would benefit Amazon over the long term, strengthen its market leadership, and create high barriers to entry for potential competitors.