Prince McLeanOn the heels of Apple's announcement that it sold 14 million iPods and achieved revenues of $5.7B last quarter, UBS Investment Research on Wednesday raised estimates and increased its target price on the company's shares to $100.
"We are excited about the new Intel Macs and other software products announced at Macworld and believe that Apple continues to innovate and is set to announce several new products over 2006 — including a new media server, an Apple branded cell phone and additional media content," Reitzes added.
The analyst also noted that some "widely anticipated" products were not announced at the show, but says he is not concerned.
"While no new iBook was introduced, it was offset by an iMac announcement and we believe an iBook is likely coming within a quarter or two anyway," Reitzes wrote. "We had discussed a media hub, but the new Macs are so powerful — they are already hubs — and we continue to believe a hub should be coming later this year with Intel’s Viiv."
The analyst said he continues to believe a new video download service and new iPod shuffle will also appear soon.
Given prospects for higher iPod sales and the positive impact on accessories, downloads, and more, UBS said it is raising estimates on Apple through fiscal year 2007.
For 2006, the firm raised its earnings-per-share (EPS) estimate to $2.33 from $2.10 based on 55-percent year-over-year revenue growth to $21.5B. For 2007, UBS estimates Apple to earn $2.80 a share based on 18-percent revenue growth to $25.8B.
The firm maintains a 'Buy' rating on Apple stock.
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25 Comments
Wow-- two forcasts for $100. I am loving this. If this keeps up, I will come out of grad school with more money than when I went in!
It seems as though the analysts are coming around to my estimates. I've already given an estimate of $100 share price in an earlier thread in response to someone saying that I should have dumped my shares at $75.
I said that it would go to over $80 from the show and the analysts call on the 16th or 18th. As Apple released some figures early, it's started already. Though we need the margins, the profits, and the breakdowns.
So how should someone like myself go about getting shares in Apple? I remember when they were at $20-30 a share. Do you guys use eTrade or something of the likes online?
I didn't wait for the analysts. As soon as I read 14 million ipods sold on one of the sites providing MWSF updates, I called my broker and bought back in. I had made the horrible mistake of selling on hearing of the Intel switch in June. Then iPod sales went up and along with it the stock. This last quarter, iPod sales went absolutely crazy. I feel I have now somewhat rectified my June error.
If just 5% of the iPod purchasers switch from Windows and buy a Mac. Apple's stock will continue to double every year for a while.
So how should someone like myself go about getting shares in Apple? I remember when they were at $20-30 a share. Do you guys use eTrade or something of the likes online?
I'm not a day trader. I have a broker at WM. I've know him for over yen years. I'd rather pay the fees, and get the personal attention when it is needed because he can alert me to incidents that might be important when I'm not in a position to find out about them myself.
You have to be careful about taxes, unless you are trading in an IRA or other tax free account, more than you have to be concerned by brokerage fees.
Most people who are day traders seem to not do well. It's too easy to pull the trigger when the costs seem to be that low. It leads to indiscretion.
Now is a difficult time to get in. There is no guarantee that there won't be profit taking at these high levels before the stock starts to rise again. this is why I wait.
Some wise guys told me that I should have sold at $75, then I could have bought back in at $71.50. From their mouths to god. Right?