Citizens Financial Group reiterated its Market Outperform rating on Amazon.com on Monday, citing accelerating artificial intelligence demand as a key driver for the company’s cloud computing segment.
The analyst, Andrew Boone, set a price target of $315 for Amazon, based on 2027 estimated earnings. The target remains below Rosenblatt Securities’ $335 valuation, which the firm assigned as part of its newly initiated Buy coverage. Boone highlighted that sustained growth in frontier AI models suggests strong returns on training investments, reinforcing tight near-term demand for compute capacity. This dynamic is expected to benefit cloud providers such as Amazon Web Services (AWS) and Google Cloud Platform (GCP).
Rosenblatt’s forecast projects AWS revenue growth to reach 45% by the end of 2026, exceeding the broader Street consensus of 38%. The firm’s outlook is supported by robust performance from AI leaders OpenAI and Anthropic, which reported quarter-over-quarter revenue increases of 18% and more than 100%, respectively. OpenAI generated $6.7 billion in revenue, while Anthropic reported $11.6 billion for the same period.
Amazon’s stock closed at $258.63 on August 21, down 0.57% for the session. The company’s market capitalization stands at approximately $2.79 trillion, with a PEG ratio of 0.23.
In a separate development, Amazon announced a $18 billion expansion of its data center operations in northwest Louisiana, including a third campus in Shreveport. The project is expected to create up to 750 full-time jobs and support an additional 2,500 positions in the local economy. The investment underscores the company’s commitment to scaling infrastructure to meet rising AI-driven demand.
Citizens also maintained a Market Outperform rating on Alphabet, setting a price target of $515. The firm’s stance aligns with broader analyst sentiment, as 22 analysts have revised their earnings estimates upward for the upcoming period, according to InvestingPro data.
