UBS raised its price target on Amazon.com Inc. to $348 from $318 and maintained a Buy rating. Amazon is scheduled to report third-quarter earnings on October 29.
UBS analysts forecast that Amazon Web Services (AWS) operating margins could reach 46% by 2027. The current consensus estimate is 38%.
The bank’s positive outlook reflects expectations for accelerating growth in AI infrastructure and a large cloud backlog. The report has drawn investor attention to the potential for higher long-term earnings and free cash flow, even as Amazon continues heavy investment in data centers and AI.