Amazon has a new biggest bull on Wall Street that thinks the company is poised to jump another 16% this year as the coronavirus pandemic continues to support e-commerce demand.

Cowen on Monday raised its Amazon price target to $3,700 from $2,750 and reiterated its "outperform" rating on the company. The price target, which is now the highest on Wall Street, represents 16% upside from where Amazon traded at Friday's close.

Shares of Amazon rose as much as 4.5% in intraday trading Monday before paring some gains.

The firm expects Amazon's "top line acceleration to continue," analysts led by John Blackledge wrote in the Monday note.

"We expect strong 2Q20 results with Rev. & Op. Inc. above high end of guide range," Blackledge said, adding that key drivers include AWS, advertising, subscription, and accelerating e-commerce growth.

Cowen arrived at its new price target by modestly raising its estimates for e-commerce and advertising, and rolling forward Amazon's discounted cash flow to 2021. Even though Amazon shares have gained more than 75% this year, the firm remains bullish as it sees their valuation as attractive.

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As the coronavirus pandemic continues, Amazon investors will look for more robust e-commerce demand from online shopping, according to Blackledge. Recent e-commerce growth for the online giant was driven by demand in essentials, Prime 1 Day shipping, advertising, and subscription revenue growth, according to the note.

It's expected that all of these elements "will remain robust in 2Q, in particular as the US faces staggered and sometimes halted re-openings that have continued into July as COVID-19 cases rise," said Blackledge.

He continued: "We also expect investors to look past the 2Q investments in COVID-19 related expenses that AMZN expects could reach $4BN, including headcount, elevated wages, safety equipment, testing, and pandemic relief efforts."

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