Amazon stock was stalling short of a new high on Monday despite a price-target hike that implies the online retailer could rally 30%.
KeyBanc analyst Justin Patterson hiked his target price to $325 from $285 and raised his estimate for 2026 sales by 1% and 2027 sales by 2%.
He said he expects the artificial-intelligence boom to carry on driving growth for the company's cloud-computing business Amazon Web Services, adding that rapid recurring revenue growth for AWS customer Anthropic "provides a meaningful tailwind." AWS likely accounts for 60% of Anthropic's total spending, according to KeyBanc's estimates.
Patterson also touted solid demand for groceries and the looming launch of satellite internet provider Amazon Leo. Amazon said last week that it had agreed to buy satellite company Globalstar, giving it more spectrum.
"Given early large customer wins, M&A, and more successful launches, we believe Amazon Leo is well-positioned to gain traction as an alternative option in the market," the analyst wrote in a research note.
Those three factors could help offset the impact of the Iran war, which has disrupted shipping through the Strait of Hormuz and sparked a surge in fuel costs.
Patterson expects the conflict to impact Amazon's second-quarter guidance, although he added that the 3.5% fuel surcharge the company levied on third-party sellers earlier this month could mitigate the impact. The company is set to report its first-quarter results on April 29.
Amazon slid 1.4% to $247.18 early Monday as tensions between the U.S. and Iran put a recent market rally in peril.
The stock finished Friday at $250.56, just 1.4% short of the record closing high it hit in November 2025.
