UBS bullish on Apple, raises target price to $54Saying Mac sales could see a boost over the next several quarters, UBS Investment Research raised its estimates on Apple today, citing a new target price of $54 a share.
To factor in higher margins and stronger sales of iPods and portables, the firm raised its June quarter earnings-per-share (EPS) estimate from 24 cents to 30 cents, and its fiscal year 2005 (FY05) estimate from $1.08 to $1.33.
UBS also boosted its FY06 EPS estimate from $1.30 to $1.60 to reflect a much higher operating margin of 12.1%, driven by lower expenses and higher revenues. The firm previously assumed an operating margin of 9.9%.
\"While some may have expected higher iPod sales & higher guidance, we believe results are impressive in terms of margins & laptop sales,\" said analyst Ben Reitzes. \"We also believe desktop sales in March were adversely impacted by anticipation of the Tiger OS set to ship in the June quarter. As a result, Mac sales could see a boost over the next several quarters from current levels.\"
To reflect its higher estimates, UBS raised its price target on Apple from $50 to $54, which it says is still based on EV/sales of slightly more than two times higher than Apples \"pre-bubble\" multiple but in line with many of its peers.
Details to follow.
On Topic: General
- This week on AI: 'Apple Car' delayed, new iOS 10 & macOS betas, 'iPhone 7' leaks & more
- Hacker who targeted celebrity Apple and Google accounts sentenced six months in prison
- US appeals court vacates Apple win in Unwired Planet patent suit
- Apple retakes top spot in FutureBrand 'perception strength' rankings
- Why Alphabet's Nest doesn't (and probably won't ever) support Apple's HomeKit