Jefferies & Company Reiterates Buy Rating, $300 PT on Amazon.com

In a report published Friday, Jefferies & Company reiterated its Buy rating and $300.00 price target from Amazon.com

. Jefferies noted, “The new Kindle family is a means to an end, in our view. We think that Amazon is seeing its most successful products – the Kindle Fire and eBook reader – more as a platform for the consumption of digital content than as consumer electronics products. While we believe they are likely selling the devices at cost (or at a slight initial subsidy), we firmly believe the ensuing tie-ratios and consumption of digital content are margin accretive longer-term and are helping Amazon retain customers and build share as the world collective crosses the digital chasm. As CEO Bezos mentioned during his presentation yesterday, consumption of digital content increases by a multiple of 4.62 after the purchase of a Kindle device (up from a multiple of 2.56 in 2008). Thus, creating the best possible user experience through high-quality hardware naturally expands the ecosystem and encourages more content consumption.” Amazon.com closed on Thursday at $251.38.