Evercore Analyst Says Amazon Is Top Mega Cap Pick

Amazon.com Inc AMZN is positioned for a move higher later in 2021, Evercore ISI analyst Mark Mahaney said Monday on CNBC's "Squawk Box."

Amazon has been in a consolidation phase following its surge in early 2020 when the stock was correctly perceived as a COVID-19 beneficiary, Mahaney told CNBC. 

Although Amazon CEO Jeff Bezos will step down from his current role in a few weeks, the Evercore analyst said he doesn't expect any operational changes to take place.

The core group surrounding Bezos has largely remained in place over the last 15 years and will continue executing for Amazon moving forward, Mahaney said. 

The analyst expects Amazon to break out of its consolidation phase when the market shifts back to favoring growth stocks in the second half of the year, he said. 

Amazon is Evercore's No. 1 mega cap pick, Mahaney said. The Evercore analyst most recently maintained Amazon with a Buy rating and set a price target of $4,500.

Amazon's annual Prime Day event takes place Monday and Tuesday and features more than 2 million deals globally.

Related Link: PreMarket Prep Stock Of The Day: Amazon

AMZN Price Action: Amazon has traded as high as $3,554 and as low as $2,630.08 over a 52-week period. 

At last check Monday, the stock was down 0.71% at $3,462.20. 

Photo courtesy of Amazon.