Analyst Edward Yruma of Pacific Crest maintained his Overweight rating for, Inc. (NASDAQ:AMZN) with a price target of $820, marking a 10% increase from current levels. This report comes as Amazon has made it a priority to optimize its shipment profitability for its Amazon Prime program.

Amazon Prime continues “to break out of the two-day box” and has been focused on delivering orders quicker. Nonetheless, the analyst has realized that users continue to use Prime 4-5 day, Pantry and add-on item. He believes that these slower, incremental-cost or add-on item options have become “more prevalent, particularly as Amazon has pushed into household items and food.” Additionally, Amazon has shown better merchandising capabilities as they try to take advantage of electronic and general merchandise, or EGM, profitability.

Yruma warns investors to keep an eye on Walmart’s ShippingPass program. It is a simple two-day shipment program that is very similar to Amazon’s original Prime program. The prices for this program are similar to Walmart store prices and after conducting a test of 65 items in a sample basket the analyst found that Amazon had restrictions on 89% of the items.

The analyst notes that fulfillment costs, the cost of taking an order and making it ready for delivery, will remain pressure point for Amazon after it rose by 24.4% in 2015. Yruma is predicting an EPS of $1.28 for Q2, which is ahead of consensus views. The analyst concludes by stating his opinion that Amazon is one of the “most disruptive forces in retail and technology today” and that it will continue to take market share from other companies.

According to TipRanks, the analyst has a yearly average return of 1.2% and a 49% success rate. The analyst has a 6.5% average return when recommending Amazon, and is ranked #1,775 out of 4,073 analysts.

TipRanks shows that out of the 35 analysts who rated Amazon in the last 3 months, 91% gave a Buy rating and 9% gave a Hold rating. The average 12-month price target for the stock is $828.31, marking a 11.08% upside from current levels.