Morgan Stanley Names Amazon Stock (AMZN) ‘Top Pick’ on Fresh Grocery Push

Morgan Stanley has designated Amazon (AMZN) as a 'Top Pick,' driven by Optimism around the e-commerce giant's expansion into the fresh grocery market. Analyst Brian Nowak reaffirmed a Buy rating with a $300 price target, suggesting a 30% upside potential. The move into perishables could significantly boost Amazon's U.S. gross merchandise value (GMV), with every 1% market share gain adding 120 basis points to 2026 growth estimates.

The U.S. fresh grocery market, projected at $600 billion by 2026, presents a substantial opportunity for Amazon. Currently, the company's U.S. grocery business exceeds $50 billion but excludes fresh perishables. Capturing even a small fraction of this market could drive multi-year growth, reinforcing Amazon's dominance in e-commerce and logistics.