NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) were advancing in mid-morning trading on Monday as Goldman Sachs raised its price target on the stock to $1,050 from $920 and maintained a "buy" rating.
The higher price target comes ahead of the e-commerce company's 2016 third quarter results, due out after Thursday's closing bell.
"We expect 30% revenue growth and 4.3% adjusted operating margins, driven by mix shift to Amazon Web Services (AWS), but offset to some extent by increased infrastructure expenses," the firm wrote in an analyst note.
Goldman expects third-quarter revenue of $33.0 billion compared to Wall Street consensus estimates of $32.7 billion. This is due to an increase in Amazon Web Services cloud computing's pace of revenue growth, Barron's reports.
"We expect +60% year-over-year growth in AWS revenue in 3Q, compared to +58% yoy in 2Q16 as new capacity comes online and pricing remained stable for key offerings," Goldman added.
(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial).
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
