By Christiana Sciaudone
Investing.com -- If you think you're tapped out from ordering from Amazon (NASDAQ:AMZN), think again.
Bank of America (NYSE:BAC) said it still sees strong growth prospects with ecommerce penetration (still!!) so low. Seriously.
The firm bumped its price target on Amazon to $4,000 from $3,650, maintaining a buy rating while admitting there are tough comps ahead. Shares are up 2%.
Supporting that increase will be an uptick in fulfilment capacity and an ongoing shift to the cloud, according to analyst Justin Post, StreetInsider reported.
"COVID-19 should accelerate Cloud demand in 2021, and retail business margins have positive tailwinds (annualizing over $10bn in COVID related costs)," Post wrote in a note. "Despite strong 2020 Amazon stock performance, the advertising and ecommerce marketplace sectors did better; applying comp multiples to each of Amazon’s segments would suggest further upside."
Amazon rose more than 60% in 2020.
Post is not alone in his thinking, despite the piles of boxes outside your door every day.
Amazon has 31 buy ratings, one hold and nary a sell, according to data compiled by Investing.com.
The company reported sales of $96 billion for the quarter ended in September, which compares to $70 billion a year earlier. Amazon's most recent profit came in at $12.37 per share, versus $4.23 a year earlier.