UPDATE: Benchmark Company Reiterates on Amazon.com Following Surprise 3Q Revenue Beat

In a report published Friday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating on Amazon.com (NASDAQ: AMZN), and raised the price target from $350.00 to $400.00.

In the report, Benchmark Company noted, “Amazon (AMZN-Buy, PT from $350 to $400) reported a surprise 3Q revenue beat, with 24% y/y growth to $17.1 billion driven by accelerating growth across all business segments despite cautious industry commentary in North America. OIBDA and operating income again surprised to the upside, albeit more mildly, as 3P and digital unit sales continued to drive COGS leverage. OIBDA of $1.1 billion was up 47% y/y, with margins expanding by 100bps y/y. Importantly, 4Q guidance was also at least in-line with expectations. We believe Amazon continues to put out the best ‘bang for your buck' tablet, which we think is helping drive accelerating Prime adoption, particularly as original Instant Video content comes online. We reiterate our belief that Amazon is still in the very early stages of international development, with 2Q's NA reacceleration possibly translating to international as digital infrastructure and physical offerings come available to a wider audience. Furthermore, we see consistent margin expansion continuing through at least 2014, helping support Amazon's seemingly lofty valuation.”

Amazon.com closed on Thursday at $332.21.