R5 said the company was well-positioned to “gain share” but downgraded the stock due to “rising future uncertainty.”
“It is important to note that our forecast still calls for growth, but not at the heady levels prior to COVID-19 and the resulting economic slowdown. It is also important to note that we still view Amazon as well positioned to gain share over time. With the stock, however, having appreciated meaningfully and reaching our $2,408 price target in the face of dramatically worsening current economic conditions and rising future uncertainty, we believe prudence dictates reducing exposure to the equity. Indeed, if we had a concern regarding our outlook it would be that we are still being overly optimistic.