Amazon stock price is among the biggest winners of the pandemic as its shares have been rallying on consumer’s shift towards online platforms. Its stock breached several records in the past two months. This week, the shares passed the $3000 milestone for the first time in history.

Amazon stock price soared 65% since the beginning of this year and shares are up 57% in the past twelve months. Despite the massive share price gains, the market analysts believe Amazon stock is still undervalued.

AMZN Amazon.com, Inc. daily Stock Chart

For instance, Baird has raised its price target for Amazon to $3,300 from the previous target of $2,750. Its analyst Colin Sebastian claims that Amazon will see long-term benefits for the surge in e-commerce sales due to coronavirus-related concerns. The analyst added that the largest online retailer has improved its market share across multiple “essential” products.

“Investors may not yet fully embed either the margin benefits of cheaper new user acquisition or the sustainability of higher growth in 2H and beyond,” analyst Colin Sebastian said.

Meanwhile, Laffer Tengler Investments chief investment officer Nancy Tengler says the robust share price appreciation is backed by the “super-fast sales growth”.

Piper Sandler analyst Craig Johnson has provided a price target of $3500, claiming that the rest of market analysts will also raise Amazon’s price target when the next earnings season starts. Amazon is scheduled to report earnings at the end of this month. The analysts are expecting it to report revenue in the range of $80.52B and earnings per share is expected around $1.52.

The share price rally is also supported by analyst’s bullish commentary. For instance, analyst Brian White said “In this new reality, we believe Amazon holds the key capabilities, vast global infrastructure and financial strength necessary to support the needs of people and organizations around the world.