AppleInsider StaffInvestment Bank Goldman Sachs this week raised its price target on shares of Apple Inc., recommending that investors hang onto shares of the company at least through its upcoming Macworld Expo and fiscal first quarter earnings announcement.
"We would remain long into these events," analyst David Bailey wrote in a research report to clients. "Although we expect most of the hardware introductions at this year's MacWorld to center on new notebooks and a greater emphasis on software and content for iPods, iPhone, and Apple TV, there will probably be enough hints of what is to come later in the year, including the next generation of the iPhone and the introduction of a sub-notebook, to keep shares in check before Apple reports its holiday-quarter earnings."
Bailey believes the Cupertino-based company's December quarter results should once again show solid revenue and earnings upside driven by strong Mac and iPod sales. As a result, he raised his per-share earnings estimate for the December quarter to $1.60 from $1.51, as well as his calendar year 2008 and 2009 per share estimates to $5.35 and $6.55 from $5.05 and $6.00, respectively, mostly driven by higher Mac assumptions.
"At the same time, coming off another strong performance in 2007 with the stock up 133 percent, we do not think Apple shares will be as explosive in 2008, and upside moves are likely to be more measured," he added.
The analyst bumped his 12-month price target on shares of the company from $205 to $220, implying an approximate 13 percent upside.
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15 Comments
there's some catchup after today's bloodbath. God I hate the stock market.
Sounds about right for Goldman, Someone needs to tell them to take their skirts off.
there's some catchup after today's bloodbath. God I hate the stock market.
it will be a while before the tools in the market realize that Apple stopped being a tech stock and started being a consumer electronics provider about four fkkking years ago.
there's some catchup after today's bloodbath. God I hate the stock market.
Nah... buying opportunity.
The big reason Apple has been up recently is the booming computer business, accompanied by a growing consumer electronics business. The Intel downgrade is the main reason for the bloodbath today, as investors are worried about a build-up in inventory, especially in Europe.
We'll know in two weeks where Apple's inventory sits, but everything I have seen suggests that sales were still amazing this past quarter. If they can't guide to 25% earnings growth for Q2 then there will be a lot more blood. That's about where concensus is today, so it is going to be close.
Hopefully, we are getting enough bad information coming in for the economy overall that the Fed will look at a drastic rate cut.
I rate AAPL an aggressive buy anywhere below $180! At worst, you can get a 12% bounce in less than a month. At best, you will double your money in a year.