Jefferies analyst Brent Thill believes Amazon stock is undervalued, citing a coming acceleration in its cloud business, AWS. He stated the stock trades at 13x NTM EV/EBITDA, significantly below its historical average. The firm has a Buy rating and a $300 price target, seeing a 25% upside. This assessment comes as Amazon's cloud unit is poised for growth.

Thill pointed to several factors supporting AWS growth, including an easier comparison, strong October bookings, and positive expert opinions. Resilient consumer spending and operational improvements in retail are also cited. Jefferies noted that fourth-quarter EBIT expectations of about $26 billion appear reasonable. This bullish outlook indicates confidence in Amazon's future performance, particularly in its cloud services.

Amazon's valuation is a key part of Jefferies' positive stance, trading at a 25% discount to major internet peers. The firm's analysis suggests that Amazon's current market price doesn't reflect its underlying strength. Investors should watch AWS's growth trajectory and how it impacts Amazon's overall financial performance and stock valuation in the coming quarters.