Citi's Key Takeaways On Amazon's Recent Management Reshuffle

Author: Anusuya Lahiri | June 23, 2022 03:40pm

Citi analyst Ronald Josey revisited Amazon.com Inc's (NASDAQ:AMZN), naming veteran executive Doug Herrington as CEO of Worldwide Amazon Stores (renamed from Worldwide Consumer) and promoting John Felton as its new head of Operations.
Given this announcement comes ~2 weeks post Dave Clark's resignation, Josey expected minimal disruption to store operations.
While Josey recognized the challenges a potential weaker macro is likely to have overall, he also believed Amazon could gain wallet share during periods of macro uncertainty.
He noted Doug Herrington was most recently head of Amazon's North American Stores business and has been a member of the S-team since 2011. John Felton led Amazon's Global Delivery Services and was also a member of the S-team since September 2020.
He believed Amazon could improve operating margins and reiterated a Buy rating and $205 target price.
Price Action: AMZN shares traded higher by 3.33% at $112.55 on the last check Thursday.
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