Mizuho lowered its price target on Amazon stock to $320 from $325 on Monday, citing valuation concerns ahead of the company’s second-quarter earnings report on Wednesday. Despite the cut, the Japanese investment bank maintained an Outperform rating on the AMZN stock, signaling continued confidence in the company’s fundamental prospects.

The $5 reduction reflects Mizuho’s view that Amazon shares have become stretched relative to their historical multiples. The firm noted that shares currently trade at 23 times its 2027 earnings estimate, compared to an average of 34 times over the past three years and 45 times over the past five years.

Mizuho’s cut is notable because it comes even as the firm raised its estimate for…