UBS raises Amazon target to $348 and sees AWS margins beating consensus
UBS lifts its Amazon price target to $348 from $318 and forecasts a 46% AWS operating margin in 2027 versus 38% consensus, ahead of October 29 results.
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what happened
UBS raised its price target on Amazon (AMZN) to $348 from $318, according to Stocktwits, which cited The Fly. The bank's analyst Stephen Ju kept a Buy rating, and the new target implies roughly 40% upside from the level at the time of the report. Shares were marginally lower as investors reacted cautiously to second-quarter results, worried that 2027 capital spending could top $300 billion and wipe out free cash flow.
UBS argues that AWS margins may come in stronger than the market expects. It forecasts a 46% operating margin for the cloud unit in 2027 versus a consensus of 38%, citing roughly $80 billion of extra AWS sales against heavier depreciation. Amazon reports third-quarter 2026 results after the close on October 29; analysts polled by Fiscal.AI expect revenue of $202.20 billion and adjusted EPS of $1.96.
why it matters
Amazon is one of the largest index weights, so estimates of AWS profitability can shift sentiment across the tech sector and among cloud rivals. The key question for the market is whether faster revenue growth can offset AI-related spending, which makes the October 29 report a key checkpoint for investors.
tags
instruments
sources
- UBS Sees 40% Upside For AMZN Stock — AWS Margins Take Center Stage Ahead Of Earnings — Stocktwits, 26 October 2026 at 13:46 UTC
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