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Amazon stock rises after BMO raises price target to new Street high

Shares of Amazon.com Inc. gained 1.8% in Tuesday morning trading after analysts at BMO Capital Markets raised their price target on shares to $1,600, the highest among analysts tracked by FactSet. The analysts, led by Daniel Salmon, are upbeat about Amazon’s advertising opportunities and believe that the ad business represents an $18 billion total addressable market “in the midterm.” He thinks Amazon could eventually generate 22% of its total gross merchandise value from direct response ads. Separately, analysts at Oppenheimer raised their price target to $1,450 and named Amazon their “top large-cap pick” for the year. “Amazon is best positioned among our large-cap universe to benefit from secular trends – shift to e-commerce, public cloud, automation and digital advertising – further supported by an improving global macroeconomic backdrop and domestic tax reform,” wrote the analysts, led by Jason Helfstein. Amazon shares have gained 11.6% so far this year, compared with a 4.8% gain for the S&P 500 Index .

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