Amazon.com Inc. (AMZN) announced an updated lineup of Alexa products Wednesday highlighted by price cuts across the brand in a move that "significantly expands Amazon's presence across the connected home," and positions the company to create a platform "that can be everywhere consumers are," JMP Securities analysts wrote in a note Thursday, Sept. 28.

Analysts reiterated a "market outperform" rating for Amazon stock and gave it a $1,125 price target. That price target implies Amazon shares could gain another 18.3% from their Wednesday closing price and the company could rise to about a $540.43 billion market cap.

JMP's rosy outlook for Amazon is not only because of impressive "expanded capabilities" of the new Alexa products, but also the sweeping price cuts to the brand. The Echo Gen2 is now 44% cheaper than the Gen1, JMP wrote, which "should lead to even greater overall adoption, resulting in more partners and third-party developers dedicating resources to the Alexa platform."

Lower prices suggest Seattle-based Amazon production has reached a scale reasonable enough to now pass savings on to the customer. JPM said there have been about 15 million Echo devices sold life-to-date and this estimate "may still be too low."

JMP sees Amazon as "one of - if not the - most forward-looking companies in our coverage universe." Amazon shares traded up 0.23% to $952.95 in early trading Thursday.

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