Amazon stock price rebounded sharply on Monday and extended the upside momentum in Wednesday trade to $3200 level. The share price rally is supported by buying on the dip strategies as Amazon stock has reported five consecutive losses in the last week.

The sentiments are also supported by the street high target price of $3800 from Jefferies. The new street high target price indicates almost 35% upside from the current level. The shares of the largest e-commerce company grew 73% year to date as staying at home policies has shifted consumer’s focus towards online platforms.

AMZN Amazon.com, Inc. daily Stock Chart

Jefferies claims that the pandemic tailwind and easy Q2 comps set it in a position to generate robust revenue growth.

Goldman also appears bullish as the firm believes the shift in demand to online platforms is likely to remain strong in the following quarters, thanks to convenience in online buying along with lower competition from a large number of retail stores.

Amazon is scheduled to report second-quarter earnings on July 30, with the consensus revenue estimate of $80.61B and earnings per share of $1.63.

Several other analysts including Cowen’s John Blackledge expect a sharp rally in Amazon stock during the second quarter. The firm provided a price target of $3700 amid the prospects for strong second-quarter earnings and a rosy outlook for the rest of the year. The analyst also forecast a sharp upside from cloud computing and ad revenues. The analysts also claim that Amazon is trading at attractive valuations despite the recent rally.

Amazon had generated revenue of $75bn in the first quarter while its operating profits declined due to higher expenses. Its free cash flows in the trailing twelve months stood around $24.3 billion. The company appears in a healthy cash position to invest in growth opportunities.