1 Stock-Split Stock Set to Soar 112% From Its 52-Week Low, According to Wall Street
Stock splits have been a hot topic this year. Amid the market downturn fueled by economic uncertainty, investors are desperate for good news, and forward stock splits have bullish implications. Specifically, splits are only necessary after significant share price appreciation, which itself is generally indicative of a strong underlying business.
Building on that, Cowen & Co. analyst John Blackledge raised his price target on Amazon (NASDAQ: AMZN) to $215 in late July, roughly two months after the company completed a 20-for-1 stock split. That represents 112% upside from its 52-week lowand 70% upside from its current price.
Amazon has struggled with rising costs this year, and that headwind has been amplified as consumers have pulled back on discretionary purchases in response to high inflation. As a result, Amazon saw revenue growth slow to single digits, and it posted a generally accepted accounting principles (GAAP) loss in the first and second quarters. That said, the long-term investment thesis is still intact, and with shares trading at 2.6 times sales -- a bargain compared to the five-year average of 3.8 times sales -- this stock-split stock is a screaming buy.
Source Fool.com
