Amazon Search Data 'Healthy,' Piper Jaffray Notes

In a report published Wednesday, Piper Jaffray analyst Gene Munster reiterated an Overweight rating and $520 price target on

. The company's unit growth is expected to remain stable or accelerate marginally during the June 2015 quarter, with continuing margin improvement. Search interest analysis for Amazon reflects robust performance for the company quarter-to-date. The company is expected to continue to witness strong unit growth. "We believe that Amazon's margin expansion story will continue to drive shares in the near term as the Street seems to be bearish on margin expansion over the next two quarters," Munster stated. With the end of the high investments that Amazon undertook in early 2015, as well as the year-on-year margin expansion reported for the December 2014 and March 2015 quarters, the analyst believes that there could also be upside to the September quarter margins and the guidance for the December 2015 quarter. "We believe that as we lap the easiest of y/y margin comps that investors will be more focused on Amazon's top line growth. We believe that this shift in focus will be met with an Amazon that is experiencing stabilized growth rates, with revenue growth remaining in the high teens and gross profit growth remaining in the low- to mid-twenties," Munster added. According to the Piper Jaffray report, the recent stability in unit growth at Amazon was driven by several factors, such as a rise in Prime membership, increased delivery speeds and wider availability of Primeeligible products. These trends are expected to continue, especially once the company beings to benefit through its same day/hour delivery and autonomous ordering strategies.