Online retail titan Amazon.com Inc (NASDAQ:AMZN) added 0.70% to US$1,133.22 today as broker Morgan Stanley sang its praises.
It says it may reach the US$1trn market cap in the next year, as it repeated an 'overweight' stance.
The broker has a 12 month 'bull case' target price of US$2,000 for the shares
Looking at the maths, the broker values Amazon's core retail business at US$600 billion, estimating 13% annual sales growth for its e-commerce business in 2022 and a 5.5% operating profit margin that year.
Its third-party marketplace business will achieve a 25% earnings before interest, tax, depreciation and amortization (EBITDA) profit margin in five years, it also reckons.