Morgan Stanley remains bullish on Apple
TariqApple Computer is evolving into a growth-driven portfolio franchise, says Morgan Stanley, which once again raised its price target on shares of the company's stock.
"We think Apple's consumer and professional product portfolios will continue to expand next year with new Intel-based Macs, additional digital content and penetration even further into the digital living room," the analyst added.
With an expanded iPod installed base of 27 million this year (vs. 5 million a year ago assuming a 2 year replacement cycle), Morgan Stanley believes new iPods, extended digital content and recent Mac refreshes should drive "impressive" December quarter results.
Given Apple's fixed cost retail model, potential for improved professional CPU growth and expanded consumer product portfolio, the firm believes additional opportunities exist for margin and valuation expansion over time.
As a result, Morgan Stanley raised its price target on Apple shares from $60 to $70 and reiterated its "Overweight" rating on the stock, meaning it expects the return on Apple shares to "exceed the average total return of the analyst's industry coverage universe, on a risk-adjusted basis over the next 12-18 months."
Malcolm Owen
Amber Neely
Marko Zivkovic
David Schloss
Wesley Hilliard
Mike Wuerthele and Malcolm Owen
19 Comments
Fantastic. I look forward to holding all of my AAPL and watching it slowly inch toward 80 (wish I could've gotten in on GOOG stock, though).
The hilarious thing is, when these companies miss their "projected earnings" by a fraction of a percent the "analysts" all complain that the company is collapsing.
Morons.
Buying stock high and selling for even higher is not the way to go. Its so much slower. I am aware of the risks though.
Buy low, sell high
yeah whats up with google. it was less than 300 a few months ago now its over $391. WTF mate???!!!
yezzz... AAPL should hit $80, $85 probably by middle of next year when intel transition is fanta-tabulous. i wanna make a graph though that charts the linear march upwards of the stock to see what different dy/dx 's will yield.
but first. gotta go to my cousins place and decide if i should carry through with getting a mac mini for them... they are using a win98 machine that is utterly.. i mean *utterly beyond all belief*... horked up.
yeah whats up with google. it was less than 300 a few months ago now its over $391. WTF mate???!!!
Google stock is messed up. No offense to their work, but I think they are vastly overvalued.
Google stock is messed up. No offense to their work, but I think they are vastly overvalued.
I use many Google services, but still, I agree with you. Seeing their stock prices gives me visions of pre-bubble times, and not the good kind because I agreed with Greenspan's take on the situation then. I thought investors were playing fast and dumb during the bubble, I had hoped they had learned their lesson, but I guess not.