Raymond James downgraded AMZN to "outperform" and cut its price target to $195
Amazon.com Inc (NASDAQ:AMZN) stock is under pressure this morning, down 3.4% to trade at $166.44 at last check, after Raymond James lowered its rating to "outperform" from "strong buy" and cut its price target to $195 from $275. The analyst in coverage cited tariff-related headwinds and broader economic concerns. Scotiabank followed suit, trimming its price target to $250 from $306.
Despite the stock's steep 23.2% year-to-date deficit, Wall Street remains overwhelmingly bullish. Of the 53 brokerages covering AMZN, 52 rate it a “buy” or better, while the average 12-month price target sits at $251.36 -- a 51.2% premium to current levels. All of this points to growing potential for more downward price-target revisions or downgrades.
Amazon.com stock just logged its 10th weekly loss in the last 11. The security’s most recent rally attempt was rejected at the 20-day moving average near the $190 level earlier in April, keeping the longer-term trend bearish. However, bullish seasonality suggest some near-term upside.
With AMZN’s Schaeffer’s Volatility Scorecard (SVS) at just 26 out of 100, the stock has tended to underperform the volatility priced into its options. This low reading makes the security a compelling candidate for premium-selling strategies, particularly for traders expecting muted movement in the near term.