Amazon is principled getting started in the e-commerce and retail business, according to one Wall Avenue firm.
Piper Jaffray reiterated its overweight rating on the internet comrades’s shares, predicting Amazon will generate strong sales increase this year.
“Amazon, despite its size and continued strong progress, is arguably still in the early innings of its share gain potential, notwithstanding in the company’s most penetrated market,” analyst Michael Olson recorded in a note to clients Tuesday. “Most domestic internet users should prefer to a significant opportunity to increase their Amazon holiday wallet interest allocation.”
Olson increased his price target for Amazon shares to $1,400 from $1,200, asserting 12 percent upside to Monday’s close.
Piper Jaffray’s measurement of 1,000 U.S. internet users revealed that 50 percent of people allocated 10 percent or less of their feast spending to Amazon. As a result, he estimated that the company had 4 percent market-place share of U.S. retail holiday spending in 2017.
“Considering the U.S. is Amazon’s most be understood market, we see this low-to-mid single digit market share as a informative positive,” he wrote.
Olson forecasts Amazon will generate 28 percent reduced in price on the markets growth in 2018.
Amazon shares rose 56 percent in 2017 versus the S&P 500’s 19 percent yield.
The company’s shares were up about 0.40 percent in early Tuesday merchandise after the report.