Amazon's Profitable Essential Merchandise, Efficiency Gains Set To Drive Growth: Analyst

Morgan Stanley analyst Brian Nowak reiterated Amazon.com Inc (NASDAQ:AMZN) with an Overweight rating and a $210 price target.

Amazon traded at 22 times Nowak’s 2026 free cash flow, representing 29% growth (fiscal 2024-2026 free cash flow per share CAGR). He said this is a ~30% discount to Amazon’s mega-cap tech peer median growth-adjusted multiple on a growth-adjusted basis.

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The price target implies paying 20 times fiscal 2027 free cash flow for 24% growth (fiscal 2025-2027 free cash flow per share CAGR) and 0.8 times on a growth-adjusted basis, a ~20% discount to Amazon’s mega-cap tech peer median growth-adjusted multiple of 1.1 ...

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