Piper Jaffray top analyst Gene Munster provides “a deep dive” insight on Amazon.com, Inc. (NASDAQ:AMZN), assessing the retail web giant’s “fulfillment footprint” and evolving innovation strategies that offer promise. As such, Munster reiterates an Overweight rating on shares of Amazon, with a $900 price target, which represents just under a 17% increase from where the stock is currently trading.

First, Munster likes Amazon’s odds for “gaining proximity to the population,” believing the giant on the heels of scaling its fulfillment insfrastructure is expanding at a faster pace than “many would believe.” Proximity is crucial, Munster stresses, as it not only reduces per unit fulfillment cost, but it also renders same-day/same-hour delivery possible, which will become “the next key eCommerce battle ground.”

Munster asserts, “Amazon’s footprint is arguably getting to a state of maturity that it can sufficiently shut out competitive threats.”

Additionally, the analyst recognizes four ways Amazon can gain advantage with innovation, from robotics in fulfillment centers, extending vertical control in its supply chain, drone delivery, to autonomous vehicles.

From the analyst’s perspective, “These innovations will come to fruition over time and the degree each contributes is not projectable, but the opportunity is clearly large and long term investors should be encouraged by the clear potential for fulfillment and shipping expenses to experience a decade of leverage.”

“Many investors have historically viewed Amazon’s shipping and fulfillment costs as perpetual burdens; we believe the evidence points otherwise. We continue to believe that Amazon is the only scaled, broad-eCommerce winner in western economies […]” Munster concludes.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Gene Munster has achieved a high ranking of #5 out of 4,147 analysts. Munster upholds a 65% success rate and realizes 18.6% in his annual returns. When recommending AMZN, Munster earns 35.9% in average profits on the stock.

TipRanks analytics indicate AMZN as a Strong Buy. Based on 34 analysts polled in the last 3 months, 32 rate a Buy on AMZN, while 2 maintain a Hold. The consensus price target stands at $884.67, which represents a nearly 15% upside from where the shares last closed.