KeyBanc Bullish on Amazon: AI, AWS, and Grocery Expansion Drive $300 Price Target

KeyBanc Capital Markets has reinstated coverage of Amazon with an overweight rating and a $300 price target, signaling a potential 36% upside. The firm highlights Amazon's valuation as an attractive entry point, pegged at 22.9x 2027E P/E, with artificial intelligence serving as the core catalyst.

AWS remains central to the thesis. Despite skepticism around cloud growth, KeyBanc notes AWS continues to outpace competitors in absolute revenue terms. Gigawatt-scale data center projects like Rainier and partnerships with AI heavyweights like Anthropic suggest accelerating momentum through 2026. "We WOULD be surprised if AWS was left behind in the AI revolution," analysts wrote.

The advertising business presents another lever. Amazon's on-platform ads and off-platform capabilities—bolstered by proprietary user data—are framed as superior to Google's Network business. Meanwhile, the grocery segment emerges as a disruptor, with plans to expand same-day perishable delivery to 2,300 U.S. cities from just 1,000 currently.