Amazon logistics shows potential for greater efficiency – BofA

By Guntakin Mehnatli
June 26, 2024

Bank of America (NYSE) reiterated its “Buy” rating for Amazon.com Inc (NASDAQ), highlighting the potential for further improvements in logistics efficiency. Despite Amazon’s projected 9 billion package deliveries this year, making it the largest US shipper, BofA notes that logistics utilization metrics remain below 2018 levels.

Key drivers for future efficiency include new cross docks and consolidation centres, enhanced inventory distribution, expanded robotics, and growth in third-party shipping services. BofA raised its price target for Amazon to $220, citing conservative retail margin projections and limited fulfilment expansion in 2024. However, potential risks include slowdowns in AWS or Ads revenue.

Amazon remains BofA’s top large-cap pick for 2024.

Amazon logistics BofA

About Author / Guntakin Mehnatli

Starting her career as a Political Journalist in 2020, Guntakin Mehnatli has dedicated the past four years to becoming an expert in finance and political news reporting. She also maintains a keen focus on trending topics in artificial intelligence, technology, startups, business and related areas.