Multiple analysts hike Amazon price targets, saying it gained lots of new customers during the pandemic

Published Fri, Jun 26 20209:39 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

(This story is for CNBC Pro subscribers only). Two Wall Street shops hiked their price targets for Amazon on Friday, saying that the gains made by the e-commerce giant over the past several months will persist after the pandemic. Deutsche Bank and SunTrust Robinson Humphrey already had buy ratings on the stock, but they raised their targets by more than $500 per share. "We think buyers are likely to continue to shop with Amazon at elevated levels even as we emerge from quarantines, and if we go back into activity declines, Amazon is better prepared to handle spikes in demand," Deutsche Bank said in a note to clients. Deutsche Bank's new price target is $3,333 per share, up from $2,750. SunTrust Robinson Humphrey hiked to $3,400 per share from $2,700. Both imply upsides of more than 20% from where the stock closed Thursday. SunTrust surveyed more than 500 consumers and found that online shopping would likely be permanently higher after the pandemic, and Amazon in particular had grown its customer base. "46% of respondents said they will purchase online MORE frequently after COVID-19, and as impressive, another 46% said their purchase frequency will not change after COVID-19," SunTrust said. Of the customers surveyed who had heard of Amazon, 10% made a purchase with the e-commerce giant for the first time ever, and another 8% did so for the first time in over a year, the note said. Deutsche Bank said that its research of customers showed shoppers still view Amazon as a top service, even as more companies have shifted to online sales. "Not surprisingly, consumers overwhelmingly wish more brands and retailers offered services like Amazon, which remains unflinchingly focused on delivering the best possible consumer experience across all four dimensions – price, selection, convenience, and trust," the bank said in a note. The stock has been one of the stalwarts during a volatile first six months of the year for markets. Shares of e-commerce giant have gained nearly 50% year-to-date, and the company's market cap has surpassed $1.3 billion.

Saul Loeb | AFP | Getty Images

(This story is for CNBC Pro subscribers only).

Two Wall Street shops hiked their price targets for Amazon on Friday, saying that the gains made by the e-commerce giant over the past several months will persist after the pandemic.

Deutsche Bank and SunTrust Robinson Humphrey already had buy ratings on the stock, but they raised their targets by more than $500 per share.