Analyst Jefferies Highlights Amazon’s Attractive Valuation Amid AI Expansion

Amazon stock offers a cost-effective entry point into AI data center and retail themes compared to Walmart and Alphabet, according to Jefferies. The firm maintains a buy rating with a $320 price target, signaling 29% potential upside. Amazon’s EV/EBITDA multiple of ~12x places it below peers like Google (18x) and Walmart (19x), making it a standout among hyperscalers. Analyst Brent Thill notes the stock’s recent 13% year-to-date gain has “only cheapened an attractive entry,” while anticipating growth from AI-driven data center investments. With 65 analysts recommending it, Amazon’s AI infrastructure plans could further boost performance if capital expenditure guidance increases.

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