Amazon's stock set to extend gains after SunTrust boosts price target to $2,000

Amazon.com Inc.’s stock AMZN, +0.73% rose 0.3% in premarket trade Monday, after SunTrust Robinson Humphrey analyst Youssef Squali raised his price target on the e-commerce giant for the fourth time this year, citing a higher expected contribution to earnings and margins from private label sales. Squali lifted his target to $2,000 from $1,900, while reiterating the buy rating he’s had on the stock since Aug. 15, 2017. Of the 47 analysts surveyed by FactSet, there are now eight price targets of at least $2,000. Squali’s price target has now increased 57% from the year-end 2017 target of $1,270.”With our tracking showing acceleration of house brand launches in early [Fiscal 2018], we continue to believe that private label is a highly under-appreciated trend, and one that should improve the user experience, grow retention and drive incremental revenue and EPS,” Squali wrote in a note to clients. “As strong an e-commerce platform as Amazon has become over the last 20 years, we believe that the best has yet to come.” Amazon’s stock rose 0.7% Friday for a seventh-straight gain, and a fifth-straight record close. It has soared 40.4% year to date, while the Nasdaq Composite COMP, +1.51% has climbed 9.4% and the S&P 500 SPX, +1.08% has edged up 2.3%.

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