Amazon is called a 'Buffett Buy' at Evercore due to long-term potential
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Evercore ISI said it continues to view Amazon (NASDAQ:AMZN) as highly attractive for long-term investors, but reeled in near-term expectations with the firm's recent data indicating more softness with consumer discretionary spending and cloud computing demand.
Analyst Mark Mahaney and team reduced the firm's 2023 total retail sales growth forecast to 6% from 10% and now see core North American retail sales growth of 10% from 15%. The forecast for 2023 AWS revenue growth was lowered to +20% from +26% and the expectation for 2023 operating margin was clipped to 3.8% from 4.0%.
That all added up to a new Evercore ISI price target on AMZN of $150 based on 14X the 2024 EBITDA estimate. The $150 level is where Amazon (AMZN) traded as recently as April, but is 70% above the current share price.
The two-year to three-year view on Amazon (AMZN) from Evercore ISI is still resoundingly bullish.
"While the company will be negatively impacted by the probable â23 Recession and likely requires Street estimates cuts on both the top and bottom line, in part due to insufficient cost actions to date, AMZN remains arguably the highest quality asset we cover in terms of Revenue and Profit outlooks."
In fact, the firm called Amazon (AMZN) a Buffett Buy in a nod to the value investors may be able to catch at the current share price.
Shares of AMZN were up 0.55% premarket on Monday to $88.33. For the year, AMZN is down 48% and trails major market indexes. 
Read the latest breakdowns on Amazon (AMZN) from Seeking Alpha authors.