Amazon.com, Inc. (AMZN) might become as big as Apple Inc. (AAPL) within the next year, according to UBS. In a note released this morning, UBS analyst Eric Sheridan increased his price target for Amazon's shares from $1,100 to $1,200 and predicted a 60% increase in its stock price over the next 12 months. This means that Amazon's shares, which are trading at $1,009.35 as of this writing, could surge to as high as $1,600 next year. In valuation terms, that figure translates to $764 billion, a figure that is fairly close to the size of Apple, which is currently valued at $781.55 billion in the markets.

Sheridan based his assessment of a bump in Amazon's shares on four factors. First, the company could see significant increases in membership numbers to its $99 per year Prime service within the next year. While Amazon has not divulged numbers relating to the service, analysts estimate between 55 million and 80 million members. (See also: Amazon Monetizes Convenience.)

Second, Amazon could see revenue growth from its expansion into new geographies and product verticals. In its recent earnings calls, the Seattle-based company has touted its growth potential and sales figures in India. In addition, it has signed an agreement with Nike, Inc. (NKE) and is expected to become the largest clothing retailer online by next year. Amazon has also acquired Whole Foods Market, Inc. (WFM) to make an aggressive push into groceries. Sheridan stated that the acquisition was an example "underlining the company's ambitions to drive greater wallet share among current Prime members." (See also: Amazon to Develop Its Own Athletic Wear Line.)

Third, Sheridan is banking on e-commerce growth in the coming years to drive overall retail sales at Amazon. Finally, he writes that the absence of competition from other tech behemoths, such as Apple or Alphabet Inc. (GOOG) subsidiary Google, could also work in Amazon's favor. Currently, Amazon leads its rivals in three industries: e-commerce, cloud computing and smart assistants. (See also: How We'll All Be Amazon.com Customers Eventually.)

To be sure, an increase of 60% or more in Amazon's stock price is not unprecedented. Its stock price soared by 90% between January and December 2015 on the back of increased sales in its retail and cloud computing units. (See also: The Top 4 Amazon Shareholders.)

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.