Nomura analyst Anthony Diclemente assumes coverage on, Inc. (NASDAQ:AMZN) with a Buy rating and price target of $950, which represents a 16% increase from where the stock is currently trading.

Diclemente underscores, “Amazon possesses a dominant leadership position in multiple large and global addressable markets. First, in e-commerce, AMZN is a beneficiary of the secular shift from the $24tn global retail market to the $2tn e-commerce market.” Every 1% of this market from Diclemente’s analysis could be representative of about $15 billion in incremental revenue and about $0.65 in EPS to the giant.

Ultimately, the analyst believes Amazon Web Services has benefited from “a plethora of first-mover advantages,” which have in turn driven share gains. Moreover, Diclemente anticipates long-term growth for both AWS revenue as well as operating income. Furthermore, the analyst believes that by investing in Amazon Prime, this becomes a probable driver in accelerating revenue for the electronics and general merchandise (EGM) market. Growth from Fulfillment by Amazon could prove to be the “largest source of EGM upside,” the analyst contends.

“AMZN is focused on growth of Prime memberships via investment in continuously improving service; aggressive growth in investment in Prime Instant Video (PIV) is a key piece of this strategy. Finally, AMZN’s leadership in the cloud industry via AWS will afford substantial benefits as the market steadily shifts from the ~$145bn on-premise infrastructure software market to the IaaS/PaaS market,” Diclemente 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, five-star analyst Anthony Diclemente is ranked #350 out of 4,185 analysts. Diclemente has a 61% success rate and gains 8.0% in his annual returns.

TipRanks analytics exhibit AMZN as a Strong Buy. Based on 32 analysts polled in the last 3 months, 31 rate a Buy on AMZN, while 1 maintains a Hold. The 12-month price target stands at $910.00, marking a nearly 12% upside from where the shares last closed.