Pro Analysis

Goldman Sachs raises Amazon forecast by $130 to $1,050 on cloud computing surge

Amazon shipping center in Schertz, Texas
Robert Daemmrich Photography | Corbis | Getty Images
Amazon shipping center in Schertz, Texas

Goldman Sachs' Heath Terry predicts Amazon will report sales that will top estimates for the September quarter as its cloud computing revenue rises. As a result he is increasing his 12-month price target to $1,050 from $920, which represents 28 percent upside from Friday's close.

"Expect continued growth momentum in AWS & Retail," Terry wrote in a note to clients Monday.

"We believe the risk-reward remains favorable as investments in web services, infrastructure and logistics result in share gains, cash flow growth and continued high returns on investment."

Amazon is scheduled to announce third-quarter financial results Thursday.