Baird raised its price target to $425 from $380 and backed its outperform rating on the country's largest Internet retailer, citing optimism over the Amazon Web Services cloud computing business.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said he liked the analyst's call on CNBC's "Mad Dash" segment, adding that investors are looking for a "breakout" in the company's Web Services businesses.
This is frustrating for investors who are short the stock, Cramer said. But there could be potential in the Web Services division down the road, which is giving long investors optimism that Amazon can indeed generate strong earnings in the future.
Amazon is also a beneficiary of the weather, he noted.
When the weather is bad, such as this year's brutally cold winter, consumers stay holed up in their homes, watching Netflix (NFLX) and shopping on Amazon, Cramer said.
Shares of Amazon have performed well this year, up 24% in 2015. However, the stock is up just 5.6% in the past 12-months.