KeyBanc upgrades Amazon (NASDAQ:AMZN) from Sector Weight to Overweight with a $2,100 price target, implying a nearly 25% upside.
The firm says Amazon is "pivoting to a company with accelerating profitability" as it takes a "number of operational moves" to improve core retail profits, which could drive mid-term earnings above consensus.
KeyBanc thinks AWS and advertising could boost margins by $100B and significantly expand margins.
Amazon shares are up 1.3% pre-market to $1,707.70.
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