Amazon (AMZN) Smartphone Will Support Digital Content Sales and Prime Subscriptions, Says Topeka

Topeka Capital reiterated a Buy rating on Amazon (NASDAQ: AMZN) with a price target of $430. Analyst Victor Anthony agrees with speculation about a smatphone launch, and he thinks it will support digital content sales and Prime subscriptions.

"Amazon is hosting an event on June 18 in Seattle. We agree with the speculation that Amazon will announce the launch of a smartphone, possibly a high-end and a low-end version. This is likely the last piece of Amazon's multi-device strategy, which includes Kindle e-Readers, Kindle Fire tablets, and the FireTV set-top streaming and gaming device, which we review in this note," said Anthony.

"Amazon is entering a crowded space, but we see an opportunity for Amazon to help grow the smartphone market. Amazon’s devices drive digital content sales, but more importantly, drive Prime subscriptions, whose members purchase more frequently and in greater dollar amounts than non-Prime members. We see a smartphone helping to accelerate that strategy," he added.

For an analyst ratings summary and ratings history on Amazon click here. For more ratings news on Amazon click here.

Shares of Amazon closed at $306.78 yesterday.

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