Equities

Analysts Spotlight Amazon and Meta Platforms with Price Target Increases

Jefferies bullish on Amazon and Meta with significant upside, while BofA faces a 'rate trap'; Coinbase and Wayfair see target hikes.

By Alex P. Chase

4/4, 07:40 EDT
Amazon.com, Inc.
Bank of America Corporation
Coinbase Global, Inc.
DoorDash, Inc.
Meta Platforms, Inc.
Tesla, Inc.
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Key Takeaway

  • Jefferies raises Amazon and Meta Platforms' price targets, citing AWS, advertising growth, and AI products as key drivers.
  • UBS downgrades Bank of America due to a potential "rate trap," while Oppenheimer sees upside for Coinbase with digital asset adoption.
  • Morgan Stanley adjusts Tesla's target amid EV sector headwinds; Evercore ISI upgrades Wayfair on home furnishing market recovery.

Analysts Spotlight Amazon and Meta Platforms

Jefferies has raised its price target on Amazon, citing a multitude of factors that could lead to a surge in the company's share prices. The firm's optimism is rooted in the global opportunities for Amazon Web Services (AWS) and advertising, which are expected to drive overall revenue growth and margin accretion. Analyst Brent Thill emphasized the need for Amazon to expand its artificial intelligence offerings to remain competitive, as multi-cloud adoption grows. Jefferies' new price target for Amazon is $225 per share, up from $190, suggesting over 23% upside from the current level. Amazon's stock has seen a more than 20% increase in 2024.

Similarly, Meta Platforms has received a price target increase from Jefferies due to expected strength in advertising revenue growth. Analyst Brent Thill believes Meta could capture up to 50% of incremental industry ad dollars, which would be the most in the company's history. Thill also highlighted Meta's suite of generative artificial intelligence products as a key driver for further capturing advertising dollars. The new price target for Meta is $585 per share, up from $550, indicating more than 15% upside. Meta's stock has surged more than 43% in 2024.

Banking and Cryptocurrency Sector Movements

UBS has downgraded Bank of America to neutral from buy, citing a potential "rate trap" that could limit the stock's upside. The firm raised its price target slightly to $40 per share from $39, implying nearly 7% upside. Analyst Erika Najarian mentioned that central bank interest rate cuts or a higher-for-longer scenario could negatively impact Bank of America's earnings per share and market multiple. Despite this, Bank of America's stock has climbed more than 11% in 2024.

Oppenheimer has raised its price target on Coinbase due to the continued adoption of digital assets and blockchain technology. The firm sees Coinbase as a key beneficiary in the cryptocurrency sector over the long term. The new price target is $276 per share, up from $200, equating to roughly 10% upside. Coinbase's stock has climbed more than 44% in 2024.

Electric Vehicle and Home Furnishing Outlook

Morgan Stanley's Adam Jonas has slightly lowered his price target on Tesla to $310 per share from $320, maintaining an overweight rating. Jonas believes Tesla's weaker-than-expected first-quarter deliveries will find a bottom by the second quarter, despite ongoing headwinds in the electric vehicle sector. Tesla's stock has pulled back more than 32% in 2024 but rose less than 1% in premarket trading.

Evercore ISI has upgraded Wayfair to outperform from in line, with a new price target of $80 per share, up from $65. The upgrade is based on a material recovery in the home furnishing market and the potential for a meaningful re-rating in the coming months. Wayfair's stock has seen more than 28% upside from the previous close.

Street Views

  • Mark Zgutowicz, Benchmark (Bullish on DoorDash):

    "DoorDash is well-positioned to benefit from a bevy of secular and fundamental catalysts over the next several years as its addressable market continues to broaden geographically and vertically... Our Buy recommendation is rooted in DASH’s ever-growing dominance in restaurant delivery and the subsequent network effects its massive user/driver scale afford it to new retail vectors including grocery, convenience, and brick and mortar broadly."

  • Oliver Wintermantel, Evercore ISI (Bullish on Wayfair):

    "We might be early, but waiting for demand to turn has historically been too late to catch the first leg up in W and we believe the cost takeout provides downside protection in a soft sales environment... At its current valuation, our perspective is that W’s margin unlock is underappreciated by the market and provides an opportunity for a meaningful re-rating in the coming months."

  • Adam Jonas, Morgan Stanley (Neutral on Tesla):

    "Negative developments in the global EV market very much matter to Tesla and should reasonably have a negative near-term impact on the price of the stock... We think numbers bottom by 2Q results, well before a major rejuvenation of the model cycle."

  • Owen Lau, Oppenheimer (Bullish on Coinbase):

    "We view COIN as an enabler of crypto innovation, which solves some pain points in the existing financial system, and one of a few remaining exchanges in this space... As a leader in the cryptoeconomy, COIN is well positioned to benefit from mass adoption of digital assets."

  • Brent Thill Jefferies (Bullish on Meta Platforms):

    "With Q1′24 rev guidance calling for even greater outperformance; we believe Meta could capture as much as 50% of incremental industry ad dollars (vs. 33% in 2023), which would be most company history... In fact; we now estimate that Meta's ad business could outgrow Amazon's for first time since 2015."

  • Brent Thill Jefferies (Bullish on Amazon): > "The global AWS [Amazon Web Services] advertising opportunities are driving overall revenue growth with corresponding margin accretion whole business... Investment AWS content fulfillment supports expansion into new products services geographies sizable potential."

  • Erika Najarian UBS(**Neutral **on Bank America): > "After adjusting estimates upward reflect cuts '24 '25 raising PT $1 $