Oppenheimer's Helfstein Cuts Amazon Price Target To $220 On Tariff Concerns

Benzinga
2025.04.28 19:13
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Oppenheimer analyst Jason Helfstein has maintained an Outperform rating on Amazon but reduced the price target from $260 to $220 due to tariff concerns impacting the e-commerce sector. He anticipates a significant hit to third-quarter results as sellers adjust to higher costs. Helfstein lowered revenue estimates for fiscal years 2025 and 2026 by 2% and 1%, respectively, and expects a 19% decline in total EBIT for 2025. Amazon shares are currently trading 1.10% lower at $186.92.

Amazon.com, Inc. AMZN shares are trading lower Monday. Oppenheimer analyst Jason Helfstein maintained an Outperform rating on Amazon but lowered the price target from $260 to $220.

What To Know: Helfstein reduced estimates ahead of the company’s upcoming earnings report, citing uncertainty around the impact of tariffs on the e-commerce industry.

He believes third-quarter results will be hit the hardest, as Amazon sellers still have inventory purchased before tariffs took effect.

Amazon CEO Andy Jassy told CNBC some sellers are buying inventory ahead of time, with consumers also making purchases before expected price increases. Sellers are likely to pass higher tariff costs onto consumers, although no major shifts in behavior have been seen yet.

Helfstein lowered overall revenue estimates by 2% for fiscal-year 2025 and 1% for fiscal-year 2026, matching the reductions to North America forecasts. He also cut international revenue projections by 2% and Amazon Web Services revenue by 1%.

The analyst also cut EBIT estimates, expecting total EBIT to fall 19% in fiscal-year 2025 and 14% in fiscal-year 2026. North America EBIT is projected to drop 49% in 2025 and 35% in 2026, while International EBIT and Amazon Web Services EBIT are expected to decline 2% and 1%, respectively.

See Also: Toyota Eyes Major Shakeup With $42 Billion Offer For Toyota Industries

AMZN Price Action: At the time of writing, Amazon shares are trading 1.10% lower at $186.92, according to data from Benzinga Pro.

Image: via Shutterstock

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