(AMZN) could be a $4,700 stock the new year.

All thanks to accelerating revenue growth, and higher margins, analysts at UBS now has a buy rating and a 12-month price target of $4,700 on the stock.

“We expect Amazon shares to re-rate ahead of 2H22 when we see revenue growth and higher margins driving estimate revisions and multiple expansion,” analysts said, as quoted by Barron’s.  “They noted that Amazon has ‘multiple levers’ to improve margins, including advertising, Amazon Web Services (AWS) and price rises. Slowing capacity builds and higher pricing could lead to better-than-expected margin inflection in the second half of next year.”

Since finding double bottom support around $3,357.69, the stock has started to pivot higher.  From its current price of $3,506, we’d like to see it challenge $3,750 again, near-term.  And, if it can race to $4,700 in 2022, we’d love to see it.

In addition, while recent AWS outages have been a royal pain, it hasn’t slowed the stock.

According to Barron’s, “While the outage is certainly frustrating for millions of website users, Amazon (ticker: AMZN) investors simply don’t expect that today’s issue is going to change the outlook for AWS or cloud computing more generally.”

Here’s hoping for a blockbuster year for AMZN in 2022.

Ian Cooper