NEW YORK (TheStreet) -- Shares of Amazon.com Inc (AMZN) were rallying, up 2.5% to $434.45 in mid-morning trading Thursday, after analysts at Morgan Stanley raised their price target on shares of the ecommerce retailer to $520 from $450 earlier today.
The firm maintained its "overweight" rating, and cited bullish trends and multiple sources of potential upside for the increased price objective.
Analysts at Morgan Stanley believe the 2016 consensus gross profit view is too low.
Morgan Stanley said fulfillment costs per unit are falling for the first time since 2010, and will continue with a return to investment in 2016.
Analysts at the firm also raised gross profit estimates for Amazon by 1% for 2015, and increased forecasts by 2% for 2016.
Separately, eBay (EBAY) is planning to launch a new shipping service that rivals Amazon Prime in Germany later this year called eBay plus, The Wall Street Journal reports.
Last November, eBay was exploring delivery options for customers in countries including the U.S. and Germany, according to Reuters.
The new eBay plus program will offer free, fast shipping and returns for customers who pay between 15 to 20 euros, or about $16.68 to $22.25 a year.
Seattle, Wash.-based Amazon.com is an e-commerce company that sells a range of products and services through its various owned and affiliated websites.
Insight from TheStreet's Research Team:
Amazon is a part of Bryan Ashenberg's GrowthSeeker.com Portfolio. Here is what Ashenberg had to say about the stock in a recent weekly summary: