Citizens analyst Andrew Boone reiterated an "Outperform" rating on Amazon (NASDAQ:AMZN) with a price target of $315. The firm noted that Amazon currently trades at 23.8x its 2027 GAAP EPS, but believes its valuation should be higher, at 29x. Citizens believes that Amazon's cloud computing leadership (AWS market share of approximately 28%) is one of the main factors supporting a higher valuation. In Q2 2026, AWS net sales grew 37% year-over-year to $42.2 billion, and operating income increased to $16.6 billion, accounting for 60% of Amazon's total operating income. AWS currently has an annualized revenue run rate of $169 billion, with custom chip and AI-related revenue run rates both exceeding $25 billion. Although Amazon also saw strong growth in its North American retail business, its Q2 2026 projected capital expenditures increased to $220 billion, resulting in a free cash flow outflow of $7.6 billion over the past 12 months, which could put continuous pressure on free cash flow.