Amazon (AMZN) Stock Target Raised to $325: KeyBanc Sees 30% Upside Ahead

Quick Overview

• KeyBanc upgraded Amazon’s price objective from $285 to $325, suggesting approximately 30% potential gains from present trading levels.
• Justin Patterson, the firm’s analyst, highlighted AWS expansion accelerating toward ~30% as the primary catalyst.
• Additional growth catalysts include AI momentum via Anthropic, sustained grocery segment performance, and the Amazon Leo satellite initiative.
• Short-term concerns around profitability stem from elevated fuel expenses and Iran-related shipping disruptions.
• Shares declined 0.9% to $248.28 on Monday, trading just 1.4% beneath the November 2025 all-time closing peak.

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Amazon received an optimistic assessment from KeyBanc over the weekend, though investors showed little enthusiasm on Monday.

Justin Patterson, analyst at KeyBanc, increased his price objective for Amazon (AMZN) to $325 from the previous $285 mark while maintaining his Overweight recommendation. Based on Monday’s closing price of $248.28, this new target represents approximately 30% potential appreciation.

Amazon.com, Inc., AMZN

The heart of Patterson’s investment case revolves around AWS performance. He characterized the cloud division’s trajectory toward roughly 30% growth as “the story of the quarter,” highlighting infrastructure scaling and an impressive pipeline of customer acquisitions.

Anthropic receives particular attention in the analysis. KeyBanc calculates that AWS represents approximately 60% of Anthropic’s overall expenditures, with the AI company’s accelerating subscription revenue viewed as “a meaningful tailwind” for Amazon’s cloud operations.

Patterson also revised upward his 2026 revenue forecast by 1% and his 2027 estimate by 2%. His updated model projects earnings per share nearing $10 by 2027, with his $325 target reflecting a 33x multiple on that projection.

Beyond the Cloud Business

The analyst identified three additional catalysts deserving investor attention. The grocery segment continues demonstrating resilience. Amazon Leo, the company’s satellite broadband venture, is preparing for deployment. And Amazon’s pending purchase of Globalstar provides crucial additional spectrum resources.

Other financial institutions share similar optimism. Truist Securities maintains a $285 target driven by AWS AI integration. TD Cowen holds a $300 price objective, anticipating Q1 2026 revenue will surpass Street expectations.

Geopolitical Tensions Create Headwinds

The picture isn’t entirely positive. The Iran conflict has created bottlenecks in Strait of Hormuz shipping lanes and elevated fuel expenses. Patterson anticipates these challenges will impact Amazon’s second-quarter outlook.

Amazon has already taken action. The company recently implemented a 3.5% fuel surcharge affecting third-party marketplace sellers, which Patterson views as offering partial protection.

KeyBanc maintains a conservative stance regarding first-half profitability overall, pointing to gasoline prices and Amazon Leo infrastructure spending as temporal obstacles.

On Monday, AMZN shares dropped 0.9% to $248.28 amid broader market weakness tied to escalating U.S.-Iran geopolitical concerns.

The stock closed Friday’s session at $250.56, positioning it just 1.4% away from its all-time closing record established in November 2025.

Amazon is expected to announce first-quarter financial results on April 29.

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