Amazon (AMZN) Expansion of Same Day Delivery Will Support 15%+ Growth - Piper Jaffray's Munster

Piper Jaffray analyst, Gene Munster believes the expansion of Amazon's (NASDAQ: AMZN) Prime Now and Same Day will support the unit growth at Amazon. No change to estimates or Overweight rating.

The total number of Prime Now cities numbers 26 in total: 22 in U.S., 2 in UK, 1 in Japan and 1 in Italy. There is an estimated average of 28K items available for order.

Same-day shipping has rolled out to 3 new metro areas over the past year and is now available in a total of 16 markets. The average same day SKUs has increased by 49% y/y; 1.5M in Dec-14 to 2.3M in Dec-15.

Prime members in applicable cities can get products delivered within one hour for a fee of $7.99; free if the order total is greater than $35.

The analyst believes growth of Prime Now and Same-Day will keep unit growth between 15-20% over the next couple of years. No change to the Overweight rating and $800 price target.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $675.20 yesterday.

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