Bank of America Merrill Lynch's research team shared its top e-commerce stock ideas in a note to clients Tuesday.
"We view global eCommerce as a strong secular growth theme that still has five to ten years to play out," analyst Justin Post wrote in the report.
The analyst gave his five key reasons why e-commerce will continue to gain retail market share:
- "Consumer acceptance of eCommerce in more categories (apparel, grocery)."
- "Improving convenience for the shopper, including better selection."
- "Faster and more reliable delivery."
- "Use of big data and improving shopping experiences."
- "Offline retailer focus and new business models targeting under-penetrated segments."
As a result, the analyst predicts online global retail sales will rise 20 percent this year to $2.08 trillion. Post also forecasts 18 percent e-commerce sales growth in 2018.
Here are three buy-rated companies recommended by Bank of America Merrill Lynch to ride the e-commerce trend, along with the firm's current price targets.