A strong showing at the highly-anticipated Prime Day summer sale could boost Amazon , Bank of America said. Analyst Justin Post reiterated a buy rating on Amazon ahead of the start of its Prime Day, which opens July 11 and goes through July 12. Bank of America expects the shopping event will likely be stronger than it was the year prior, driving meaningful sales for Amazon and help it continue to take online retail market share. AMZN 1D mountain Amazon shares 1-day “We project 10% 2Q and 10% 3Q [gross merchandise value] growth for Amazon (as 3Q is comping Prime Day last year), and note Amazon is likely still taking share within Online Retail (we estimate industry is growing in mid-single digit range),” Post wrote in a note on Sunday. The analyst noted that this year’s Prime Day marks the first since Amazon’s transition to a regionalized logistics network, which suggests the online retailer can make even faster Prime Day deliveries than in years past. Amazon is trying to meet demand from consumers who are searching for more bargains in 2023. That could support a rise in GMV for Amazon in the third quarter. “With consumers looking for deals, more merchant participation, faster deliveries, and steep discounts, we expect a relatively strong Prime Day, with potential for upside to our 12% growth estimate vs. Prime Day last July, and potentially setting up Amazon for modest GMV acceleration in 3Q. Maintain Buy,” Post wrote. Amazon shares are higher this year by 54%. Bank of America’s $154 price objective implies the stock could rise another 18% from Friday’s close. —CNBC’s Michael Bloom contributed to this report.
