Neil HughesUBS on Monday issued a short-term "Buy" rating on Apple's stock, and also raised the target price from $160 to $170. Analyst Maynard Um, however, maintained the stock's neutral rating for its 12-month forecast.
"Although our concerns regarding the potential impact of broader economic weakness remain," Um wrote, "a full (quarter) of MacBook Pro refreshes & iPhone 3GS expansion internationally should help Sept. (quarter). From a catalyst perspective, a potential data-centric (product) at Verizon Wireless, potential iPod refreshes, & new wireless operators (China, Europe non-exclusives, etc.) may help near term sentiment."
In the past, Um has expressed concern that increased component costs, particularly on LCD panels, could hurt the company's bottom line. He believes, however, that the announcement of a Verizon Wireless product would change the stock's outlook. Of all major analysts surveyed by AppleInsider after Apple's third quarter earnings report, UBS was the only one that was not bullish on AAPL stock.
With his latest report, Um believes that iPhone 3GS expansion, Mac sales and new products will drive the company's revenue higher in the short term. However, he believes it will be somewhat offset by component pricing — what he calls "the big wild card."
Um notes that Apple's fourth-quarter gross margins are usually lower, though that may be offset this year by higher margins on the iPhone.
In the June quarter, Apple reported record sales on the strength of the Mac and iPhone. The company posted revenue of $8.34 billion and a net quarterly profit of $1.23 billion, or $1.35 per diluted share.
Apple has clearly stated they intend to launch the iPhone in China soon. Last month, a new model of the iPhone for the China Unicom network was approved for use in the country, fueling speculation that an announcement could be nearing.
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91 Comments
As far as individual investors go, unless Apple offers a dividend, they're only going to be a short term opportunity. It just can't be justified as a buy and hold stock, it's always going to be a buy and sell.
This might help as well . . . if it's true.
http://www.macdailynews.com/index.ph..._with_blu_ray/
This is another post that just says nothing.
Let's put it this way. Announcing a product or NOT announcing a product will affect the company's stock outlook. What do you think of those apples.
Appleinsider this is starting to get really old an analysts report is not news and is not a rumor thus is not info we need to see here. I mean really a contract with another cell company might impact Apples stock - who would have thought of such a thing. A prostitute has more reason for being than these guys.
I don't know what the rest of Appleinsider thinks but these analyst reports are a waste of time. Maybe a poll is in order to see if the readership is even half interested in this stuff. It is just a shame that Appleinsider validates these idiots by printing this crap.
Dave
Appleinsider this is starting to get really old an analysts report is not news and is not a rumor thus is not info we need to see here. I mean really a contract with another cell company might impact Apples stock - who would have thought of such a thing. A prostitute has more reason for being than these guys.
I don't know what the rest of Appleinsider thinks but these analyst reports are a waste of time. Maybe a poll is in order to see if the readership is even half interested in this stuff. It is just a shame that Appleinsider validates these idiots by printing this crap.
Dave
Totally agree- but just like anything similar, I ignore it. I mean if this were written 3 months ago, it might have some credence but now as is? total BS.