Just two weeks after Amazon.com, Inc. (NASDAQ:AMZN) shares reached an all-time high of $1,083.31, analyst Rob Sanderson at MKM believes the climb is not over yet.

Projecting narrowing operating margins and a climb in spending estimates, the analyst is getting more bullish on the online e-commerce giant, reiterating a Buy rating on the stock while raising the price target from $1,095 to $1,275, representing a near 19% rise above current trading levels. (To watch Sanderson’s track record, click here)

Sanderson’s confidence stems from recognizing Amazon’s ability to innovate in multiple segments including its primary end markets, retail and computing. “The company is a dominant disruptor in both segments and each opportunity is massive with only single-digit penetration,” asserts the analyst, elaborating, “We assume GAAP operating margin of 7% for North America commerce, 5% for International commerce and 33% for AWS, applied to our 2022 forecast. We apply a 30x P/E to commerce and 35x to AWS earnings to our estimates for 2022, which we think the stock will trade at by 2021. This implies a $2,010 stock in 3.5 years.”

In order to accomplish this feat, the analyst opines that the company “should be managed for profits until growth opportunities become more limited or more risky. Until then, we are valuing the business on earning potential.” However, considering the company’s relatively low penetration in terms of U.S. and global e-commerce markets, 12% and 10%, respectively, the analyst comments, “We do not expect AMZN will be highly profitable anytime soon.”

Yet, with earnings prospects in mind, Amazon remains “the best long-term growth story available to investors today,” Sanderson concludes.

TipRanks analytics demonstrate AMZN as a Strong Buy. Out of 31 analysts polled by TipRanks in the last 3 months, 29 are bullish, while only 2 remain sidelined on Amazon stock. With an upside potential of nearly 19%, the stock’s consensus target price stands at $1,169.08.