June 2 - Bank of America (BAC, Financial) has raised its price target for Amazon (AMZN, Financial) to $248 from $230, citing accelerating adoption of robotics and artificial intelligence across the company's logistics network, according to a Monday note.
Analysts maintained a Buy rating and said Amazon's expanding use of automation is improving operational efficiency, helping manage costs, and likely supporting faster delivery speeds across its retail business.
Amazon now uses more than 750,000 robots, which assist with roughly 75% of customer orders. In May, the company introduced eight new robots at delivery stations, building on the rollout of its first 12th-generation automated fulfillment center in late 2024.
Bank of America noted that Amazon's deployment of AI-powered robotics is reducing its reliance on manual labor and enabling more scalable warehouse operations. Analysts added that Amazon Web Services' AI tools are giving it an edge in bringing these technologies to market faster than rivals.
The firm estimates Amazon's retail margins could expand by up to two percentage points over the long term. In 2024, the company's retail operating margin rose to 5.4%, with further upside expected from advertising, third-party services, and subscriptions.
