Loop Capital has reaffirmed its “Buy” rating on Amazon (AMZN, Financial). The company also set a $275 price target on the stock and said it expects strong demand and a promising margin picture. Amazon’s key segments, Amazon Web Services (AWS) and retail, are expected to grow, according to the investment firm.

The optimistic forecast was one of the main reasons for Amazon’s new RTO (Return to Office) policy last week. According to the company’s analysis, the policy would force employees to come into the office five days a week, which could actually lead to higher turnover among employees who are better paid. This fluctuation is difficult to measure, but is seen as a possible driving force and a likely catalyst for near-term profit margin improvement.

The Loop Capital analyst also pointed to AWS’s better-than-expected performance and said high margins are likely to continue, while pointing to the strong unit recovery in Amazon’s retail segment, which he said is being underestimated by the market . This recovery, the company said, could result in stronger-than-expected growth; Current models on Wall Street don’t capture any of this.

Given a complicated market, Loop Capital remains confident in Amazon’s growth potential. From a support standpoint, the analyst remains bullish on Amazon stock as a bundle of expected improvements in margins and growth potential from 2025.