Evercore ISI has once again affirmed an Outperform rating on Amazon.com (NASDAQ:AMZN), maintaining a $335.00 price target while pointing to growing traction in the company’s grocery business as a central catalyst.
In its assessment, the research house emphasized two primary drivers behind Amazon’s grocery push: accelerated delivery capabilities and a clearer, more focused physical retail footprint centered on Whole Foods Market.
On the delivery front, Evercore ISI notes plans to broaden the grocery Same-Day Delivery service into additional communities during 2026. The firm also highlighted Amazon’s existing grocery delivery reach, which it says already covers more than 5,000 U.S. cities and towns.
Complementing the same-day offering, Amazon has begun introducing Amazon Now, a rapid service intended to deliver grocery orders in 30 minutes or less. Together, the expanded Same-Day coverage and the Amazon Now pilot represent a push to shorten delivery lead times and better serve perishable categories.
Concurrently, Amazon is executing a strategic change in its physical retail approach. The company is closing all Amazon Fresh and Amazon Go storefronts and plans to convert select locations into Whole Foods Market stores, consolidating its brick-and-mortar grocery operations and concentrating on the Whole Foods banner as its primary physical presence in groceries.
Beyond retail moves, Amazon recently won a major contract from the Pentagon valued at $581 million to support the U.S. Air Force’s Cloud One Program. The agreement, which runs through December 2028, covers provision of Amazon Cloud Service across multiple facilities in the United States.
Analysts from other firms have also updated their views ahead of Amazon’s upcoming earnings. BofA Securities lowered its price target to $286 while forecasting fourth-quarter revenue of $213 billion, a figure the bank says exceeds Street expectations. Stifel raised its price target to $300, attributing the upward revision to Amazon’s advertising strength. KeyBanc set a higher target at $308, citing potential growth in Amazon Web Services by 2026.
Wedbush has maintained an Outperform rating following the decision to close Amazon Fresh and Amazon Go stores, viewing the move as a step toward focusing on growth areas and gaining market share in perishables. Collectively, these analyst moves and Amazon’s operational shifts reflect efforts to sharpen the company’s grocery strategy and bolster future growth prospects.
While Evercore ISI’s reiteration underscores confidence in the grocery strategy, the recent range of price-target revisions across brokers highlights differing views on the near-term revenue and profit trajectory as investors await the company’s next quarterly report.