JP Morgan reiterated Overweight rating and $145 price target for Amazon (AMZN), citing the prospect of higher profitability next year.

Amazon should benefit from “continued secular shift toward e-commerce and cloud growth,” the analyst wrote. “Amazon is the most diversified mega-cap across revenues and profit and has numerous large growth opportunities.”

Amazon shares rallied by 0.9% to $94.23 in early trading Monday.

JP Morgan said in a note the e-commerce giant had doubled fulfillment capacity since the pandemic first started and should now generate higher profit margins going forward from the prior 2.5 years of capital expenditure investments. The bank estimates Amazon’s operating profit margin will rise from 2.4% this year to 4.2% next year.

Amazon is “starting to show more profit, with its high-growing AWS (Amazon Web Services) and advertising revenue streams.”

JP Morgan said corporations are still early in their transition to cloud computing with just 15% of current computing workloads on the cloud today.

The internet stock has declined by 43% this year after a series of outlook reductions, versus the 29% drop in the Nasdaq Composite.