Morgan Stanley Names Amazon Top Pick
Morgan Stanley analysts upgraded Amazon to their top pick on 19 Oct 2026, maintaining an Overweight rating and raising the price target from $335 to $350 per share. The firm estimates roughly 40 % upside to the new target and cites a 3‑to‑1 risk‑reward ratio.
The analysts highlighted AWS’s revenue growth trajectory, describing the cloud unit as operating under a “rule of 90” and noting increased visibility for the Bedrock platform and Amazon’s positioning in “agentic commerce.” Morgan Stanley now forecasts AWS revenue to expand 47 % year‑over‑year in 2027 and 42 % in 2028, driven by higher Nvidia GPU shipments. It expects AWS incremental EBIT margins to be in the high‑40 % range for both years, which could translate into approximately $16.50 earnings per share for Amazon in FY 2028.
Five catalysts were identified: (1) AWS’s path toward $1 trillion in revenue, (2) the strength of the Bedrock platform during the inference phase of AI adoption, (3) Amazon’s role in agentic commerce, (4) a planned more‑than‑double increase in the fleet of robotic arms in 2026, and (5) continued retail positioning. Following the release, Amazon shares closed more than 4.3 % higher on Monday.