In a research report issued today, Axiom analyst Victor Anthony maintained a Buy rating on shares of, Inc. (NASDAQ:AMZN) with a $650 price target, which represents a potential upside of 34% from where the stock is currently trading.

Anthony wrote, “AWS’ business case has been to use scale and innovation to drive down costs and pass the savings to customers. Price has been a factor for customer ads and stickiness, but breadth and depth of product and operational track record play a major role in locking in customers. The expectation over the long haul is that AWS can drive significant growth in FCF and high ROIC.”

“However, there is still the need for investment as this is an opportunity that is still in the early days. Margins were impacted by the major price increase last year (there have been seven price decreases since) but through efficiencies they were able to drive operating margins back to the 20% range in 2Q15,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 13.0% and a 58.1% success rate. Anthony has a 24.8% average return when recommending AMZN, and is ranked #136 out of 3737 analysts.

Out of the 39 analysts polled by TipRanks, 26 rate Amazon stock a Buy, while 13 rate the stock a Hold. With a downside potential of 9.3%, the stock’s consensus target price stands at $439.27.