Amazon could jump 19%, even after doubling this year

While Amazon’s stock has more than doubled during 2015, Pacific Crest analysts predict the e-commerce giant’s shares will rise 19% in the next year.

The analysts have started coverage of Amazon.com Inc. AMZN, -0.42% with an overweight, or buy, rating, as well as a 12-month price target of $800. That implies a rise of 19% in the next year, as the stock has lately traded around $670.

Amazon is up 116% in 2015 as of Monday’s close. It’s the S&P 500’s SPX, -0.70% second-best performer in the year to date, topped only by Netflix Inc. NFLX, -4.25%

Another e-commerce play — Liberty Interactive Corp. QVCA, -0.89% — as well as Internet retail in general have drawn praise from the Pacific Crest analysts, who have given their views on the sector in a 137-page research report dated Monday.

“With e-commerce penetration at a mere 7% of U.S. retail sales, the channel has significant room to expand,” said Edward Yruma, Jessica Schmidt, Noah Zatzkin and other Pacific Crest analysts in the report. “We believe that e-commerce can be at least 30% of total retail sales in the next five years.”

“Amazon continues to innovate at a high rate, and we believe it is embedding itself into the shopping habits of consumers globally,” the analysts write. They highlight apparel, grocery sales and Amazon’s cloud-computing business as “three large medium-term opportunities” that could help the company achieve sustained 15% growth in revenue and free cash flow.

The e-commerce giant is “one of the most disruptive forces in retail and technology today,” and it “continues to expand its competitive gap with other retailers,” the analysts added.

Meanwhile, the Pacific Crest analysts have started coverage of Liberty Interactive with an overweight rating. Their 12-month price target for the stock is $31, implying a rise of 14% from where it finished last week. Liberty Interactive’s brands include the TV shopping network QVC, Evite, Backcountry.com and Bodybuilding.com.

“We think QVC is one of the unsung and underappreciated e-commerce players,” the analysts wrote. They add that the acquisition of shopping site Zulily “should help lift growth over the next few years.”

Pacific Crest is less bullish on a couple of other e-commerce plays, slapping sector weight, or neutral, ratings on diamonds seller Blue Nile Inc. NILE, -1.99% and home-furnishings retailer Wayfair Inc. W, +5.34%

Market Watch