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Amazon gets a $1,000 price target from a top Wall Street firm

Amazon Prime has been a key driver of growth for the company.

Another investment bank has given Amazon’s stock price a $1,000 target.

Cantor Fitzgerald boosted its price target on Amazon (AMZN) from $835 to $1,000, noting that “e-commerce is reaching a tipping point” and Amazon is the “biggest beneficiary.”

Cantor pointed out that Amazon Prime continues to be a big driver of business for the company.

“Prime’s value proposition continues to increase as a result of expanding same/next-day delivery footprint, improving content (video, music and books) and other add-on benefits. We estimate that the service now has over 60 [million] members worldwide and ~40 [million] in the US. Given the propensity of Prime members to spend 2-3x more annually than non-Prime members, we estimate that the company’s robust pace of growth (28% Y/Y rise in paid units in 2Q16) should continue,” the note said.

According to Cantor, Wal-Mart ( WMT), even with its recent acquisition of Jet.com, is “unlikely to make much of an impact” on Amazon in the near term.

“Wal- Mart is looking to spend ~$11B in annual capex in FY17 and FY18, with a sizable allocation for further buildout of its e-commerce/tech operations and add. While it remains to be seen how this effort plays out, we do not expect it to slow Amazon’s current momentum, given the latter’s significant lead online offering and a sizable and growing Prime member base,” the note said.

While this valuation for Amazon “does not look cheap” in the short-term, Cantor maintains its buy rating for the stock, suggesting that investors “take a longer-term view.”

Alliance Bernstein and RBC both issued a $1,000 price target on Amazon’s shares earlier this year.

Julia La Roche is a finance reporter at Yahoo Finance.

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