UPDATE: Benchmark Company Reiterates Buy Rating, Raises PT on Amazon.com

In a report published Wednesday, Benchmark Company reiterated its Buy rating on Amazon.com AMZN, and raised its price target from $310.00 to $330.00. Benchmark Company noted, “Amazon.com (AMZN-Buy, PT from $310 to $330) reported 4Q12 revenue growth of 22% to $21.27 billion, well below consensus at $22.26 billion, primarily reflecting a combination of soft physical media sales and the ongoing mix shift to third-party (3P) sales. However, strong digital sales, including 70% y/y growth in ebooks, combined with the 3P mix shift, drove a 340bp y/y improvement in gross margins, leading to OIBDA of $1.3 billion, up 67% y/y, exceeding our $1.1 billion estimate. Operating income of $405 million came in well ahead of consensus despite a significant ramp in D&A. EPS of $0.21 fell short of consensus at $0.28 and our $0.34 estimate, but included an estimated $0.19 impact from a higher tax rate. While 1Q13 guidance was a bit disappointing, we think Amazon finally showed material evidence of the margin potential investors have been expecting.” Amazon.com closed on Tuesday at $260.35.