Shares of Amazon (AMZN) - Get Report edged up Tuesday as RBC Capital Markets raised its price target on the tech giant's stock amid signs its rollout of one-day shipping to Prime members is gaining traction.

Amazon's stock price rose 0.89% to $1,776.29 Tuesday morning as RBC reiterated its outperform rating on shares of Amazon while raising its price target to $2,600, up from $2,250 previously.

Amazon, which is rolling out one-day Prime shipping across the U.S. within the year and globally over the next two to three years, should see a 7%-15% percent boost in revenues from the faster service, for a total increase of $11 billion to $24 billion, according to analysts at RBC.

More than 64% of U.S. internet users say they are "extremely" interested or "very interested" in next-day shipping, the RBC report notes, citing its own polling.

"AMZN may well generate accelerating Revenue & Unit growth for some time as One-Day goes nationwide & worldwide," RBC notes. "AMZN is tapping into real demand here."

Sellers and vendors are also "bullish" on one-day Prime shipping based on rising consumer interest, which, in turn, should further boost interest in Amazon's core Prime membership.

Based on initial gains from its Prime one-day rollout as the "catalyst," RBC has boosted its revenue estimates for 2020 to $337 billion, 2% higher than current Wall Street estimates and implying 21% growth, while raising its 2021 revenue forecast to $411 billion, "implying 22% growth & 6% upside to Street," the report notes.

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