Core Viewpoint - Analysts have raised price targets for Amazon, indicating a potential for a moderately strong rally in the next 12 months, with a focus on price predictions for 2026 [2][4]. Price Target Updates - Wells Fargo analyst Ken Gawrelski raised the price target from $292 to $295 per share, maintaining an "overweight" rating [5]. - Oppenheimer analysts increased their price target from $290 to $305 per share, also reiterating an "outperform" rating [5]. - The average of these two price targets suggests a target of around $300 per share, which is seen as an attainable milestone within the next year [6][7]. Earnings Growth and Valuation - Earnings growth is identified as a major catalyst for Amazon's stock price appreciation, with forecasts suggesting earnings of $8.92 per share for the next fiscal year [8][9]. - Current share prices reflect a forward P/E ratio of approximately 26, which is considered fair compared to other stocks in the "Magnificent Seven" [9]. - Historical context shows that prior to an AI slowdown, Amazon's valuation was nearly 35 times forward earnings, indicating potential for valuation expansion [10]. Interest Rates and Market Conditions - Lower interest rates are generally favorable for growth stock valuations, and there is speculation that the Federal Reserve may implement further rate cuts [11]. - The ongoing AI boom could lead to a sector-wide rerating of major tech stocks, including Amazon, enhancing its growth prospects [11]. Conclusion - If Amazon meets or exceeds earnings projections and achieves a mid-30s forward P/E ratio, the stock could rise above $300 per share, potentially reaching around $312 [12].