Amazon.com Inc.'s stock tacked on 0.9% in premarket trade Wednesday, after Piper Jaffray analyst Gene Munster said he believes the shares still have significant upside as analysts and investors appear to be underestimating the potential for margin expansion. Munster kept his rating at overweight, but raised his stock price target to $520, which is 21% above Tuesday's closing price of $430.99, from $475. "While the easy money on [Amazon] is off the table, we continue to believe that shares can move meaningfully higher as there remains one quarter (September) of margin expansion above Street and buyside expectations," Munster wrote in a note to clients. He also believes investors will increasingly focus on revenue growth, which he is optimistic about given investments in same-day shipping, Amazon Fresh and his belief that the e-commerce market is still in its infancy. Amazon's stock has run up 39% year to date through Tuesday, while the S&P 500 has gained 2.5%.
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