By Dhirendra Tripathi
Investing.com – Amazon (NASDAQ:AMZN) shares rose in a weak market after Morgan Stanley 's (NYSE:MS) latest bullish target for the stock: $6,000 by 2023.
According to StreetInsider, Morgan Stanley analyst Brian Nowak reiterated his overweight rating on Amazon with a target of $4,500, while going on to make a case for the $6,000 per share mark.
The online retailer and cloud services provider currently trades at around 1.2 times 2022 earnings on a PEG basis, an approximately 30% discount to its median tech peer group.
Nowak believes that with Amazon’s scaling profitability and given its discount relative to the peer group, the stock would warrant a $4,500 level at even 1.7 times PEG, according to StreetInsider. But this may not be enough.
Factors like a large addressable market across Amazon’s business lines, including retail, advertising, logistics, healthcare, cloud, autonomous driving and the rising user base of its Prime service all combine to ask for an even higher target for the company’s stock price, the analyst believes, as per StreetInsider.
"These factors could justify a higher PEG, and a PEG of ~2-2.5X would imply a ~$5,000-$6,000 share price within the next 12 months (potentially a double from here)," Nowak wrote.