(CercleFinance.com) – BofA on Monday renewed its buy recommendation and price target of $ 4,450 on Amazon, which it makes its preferred value in the ‘FANG’ segment for 2022.
The broker notes that after a strong stock market year in 2020, the Amazon stock did less well than the S&P 500 last year, advancing only 4% against a 30% jump for the benchmark.
An underperformance that the broker attributes to supply problems and labor shortages, difficulties he says will be resolved this year.
After the ‘massive’ investments made by the technology group, BofA says it anticipates an acceleration in profit margins over the period 2023-2025, a prospect which he believes justifies a privileged value status within the sector.
The acronym FANG designates the Internet giants such as the American groups for Facebook, Amazon, Netflix and Google (Alphabet group).
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