Cantor Fitzgerald lowers Amazon stock price target to $280 on valuation

Cantor Fitzgerald recently revised its price target for Amazon.com (NASDAQ:AMZN) downward, now expecting the stock to reach $280, down from $310, while retaining an Overweight rating. Despite the lower price target, Amazon's stock boasts a favorable valuation, as evidenced by a P/E ratio of 19.02 and a PEG ratio of 0.26, both indicating the stock is undervalued given its growth prospects.

Amazon's third-quarter results met revenue expectations and surpassed operating income estimates by 7%, indicating strong financial health. Analysts anticipate AWS revenue growth to accelerate to 40% in fiscal years 2027 and 2028, with backend backlog growing by $82 billion in the most recent quarter. Amazon reiterated its fiscal 2026 capital expenditure projections, signaling continued investment in its operations.

The firm raised its revenue forecast for fiscal 2027 by 1% and operating income by 4%. Amazon's AI infrastructure capacity is expected to expand in the coming quarters, further contributing to its growth narrative.