UPDATE: Raymond James Upgrades Amazon.com on Multiple Positive Factors

In a report published Friday, Raymond James analyst Aaron Kessler upgraded the rating on

from Market Perform to Strong Buy, and named a $446.00 price target. In the report, Raymond James noted, “We are upgrading shares of Amazon from Market Perform to Strong Buy given: 1) Continued revenue momentum with accelerating growth in the U.S. - Amazon also noted millions of new prime subscribers added in the quarter; 2) Strong AWS growth - we estimate growth of ~77% in 2013; 3) Our expectation for improving margins in 2014 and beyond (i.e., larger more automated warehouses, improving international margins). Ultimately we believe long-term non-GAAP operating margins can reach ~10%. 4) Despite the after-hours move (~$360), we believe shares offer an attractive risk/reward at current levels (1.7x revenues or ~25x 2014 EPS using our LT margin normalized margin assumption). Our sum-of-the-parts analysis (SOTP) across Amazon's 1P, 3P, AWS, and Advertising, yields a target price of $446.” Amazon.com closed on Thursday at $332.21.