"Amazon believe's the future of retail is a mix of mostly online and some offline," Munster wrote.
"Target is the ideal offline partner for Amazon for two reasons, shared demographic and manageable but comprehensive store count."
Muster's top prediction was that AI was set to take center stage in 2018.
"We believe the hype around AI is justified given it's hard to understate the significance that AI will have on the future. In 2018 we expect the AI momentum to continue."
He also said Elon Musk was set for a good year, Tesla Model 3 production ramps from 2,500 in 2017 to greater than 150,000 in 2018.
"We're encouraged by hundreds of Model 3s have been spotted at delivery centers and at the Fremont factory," he said.
The predictions come as Amazon.com said on Tuesday it shipped over 5 billion items worldwide via its subscription based Prime service in 2017 while adding more new members than ever before.
The e-commerce giant, which revealed its Prime shipment numbers for the first time, did not give comparable full-year shipment number for 2016.
Amazon claimed that its Fire TV Stick and voice controlled smart device Echo Dot were the best-selling products among U.S. Prime members from any manufacturer in any category across all of its product offerings.
Amazon Prime, which offers its users services like free two-day shipping for certain purchases, unlimited streaming of movies and TV shows with Prime Video, has been attracting more subscribers every year.
The company said it shipped over 1 billion items worldwide via Prime during holiday season in 2016.
Amazon Prime, which entered countries including Mexico, Netherlands, Luxembourg and Singapore last year, now is present in 16 countries around the world.
Shares of the Seattle, Washington based company were up 1.5 percent at $1,187 in afternoon trading.
It comes as last week Donald Trump opened up a new chapter in his running feud with Amazon CEO Jeff Bezos, saying the United States Postal Service should be charging the online shopping giant more for shipping.
"Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer?" the president asked on Twitter.
"Should be charging MUCH MORE!"
Trump's jab at Amazon's bottom line is a continuation of his longstanding battle with Bezos, who also owns The Washington Post.
The Post, one of the newspapers Trump most loves to hate, has drawn his ire since early in his presidnetial campaign for generating negative coverage of the Republican.
The USPS has posted losses for 11 straight years, largely on the basis of gigantic legacy pension and health care costs.
And while online shopping has led to growth in its package-delivery business, fewer Americans send letters via first-class mail every year.
Federal regulators moved recently to allow bigger jumps to stamp prices beyond the rate of inflation, which could eventually increase companies' shipping rates.
Amazon, on the other hand, has the markings of an unstoppable juggernaut – and one analysis shows that the Postal Service is giving it a free ride.
An April report from Citigroup found that the fast pace of change in the shipping business has left the USPS struggling to allocate its expenses correctly.
