Amazon has a new weapon in its war on brick-and-mortar retail (AMZN)

pulse

March 23, 2017 6:27 PM

Morgan Stanley has put a $900 target on the Amazon stock price, thanks to the company's new Prime Only credit card.

Jeff Bezos worked the grill at McDonald's

The environment for brick-and-mortar stores is abysmal.

And now, according to a note out March 23 by equity analysts at Morgan Stanley, the retail giant has a new weapon in its war against brick-and-mortar retailers: credit cards.

"Amazon's new Chase card is expected to drive more spend towards Amazon and away from retailers as 82% of prospective new Amazon card owners plan to shop "more" or "a lot more" on Amazon than they currently do."

The bank has a price target for Amazon of $900 per share, above Amazon's current share price of $849.84.

Their price target for a number of retailers are lower than the current market price. For instance, the bank's price target for Nordstrom Inc. is $38 per share, below its current $42.33 share price. Their price target for Kohl's is $35 per share, below its current $37.42 price.

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