Broadpoint.AmTech Ups Target On Apple (AAPL) to $280
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Broadpoint.AmTech analyst Brian Marshall lifted his price target today on Apple (Nasdaq: AAPL) from $264 to $280, citing the attractive revenue steam from the coming iPad. The firm reiterated their Buy rating.
Marshall said, "...the next major catalyst for AAPL shares will be the launch of the iPad (April 3). We believe the general consensus (i.e. select media outlets) view of this device and its potential is overly pessimistic. We note the vast majority of the naysayers have not yet had the opportunity to use the iPad on a firsthand basis. As we stated in the past, we were hooked after the first 15 minutes of use. In our view, the true genius of the device is its media/content aspects (e.g. eBooks, newspapers/magazines, Apps/games, movies/TV episodes, etc.) which we believe will be recurring in nature."
He estimates iPad-related recurring revenue from content purchases will approach ~30% of total iPad hardware revenue in CY11.
The firm is raising their CY10 iPad unit estimates from 2.2 million units to 4.0 million units. They think this could go to 7 million if the device lives up to its potential.
The firm is raising their 2010 EPS estimates by 6% due to the iPad. The firm now sees 2010 EPS of $12.75, up from $12 and the consensus of $12.14. The firm now sees 2010 revenues of $57.913 billion, up form $55.738 billion.
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Marshall said, "...the next major catalyst for AAPL shares will be the launch of the iPad (April 3). We believe the general consensus (i.e. select media outlets) view of this device and its potential is overly pessimistic. We note the vast majority of the naysayers have not yet had the opportunity to use the iPad on a firsthand basis. As we stated in the past, we were hooked after the first 15 minutes of use. In our view, the true genius of the device is its media/content aspects (e.g. eBooks, newspapers/magazines, Apps/games, movies/TV episodes, etc.) which we believe will be recurring in nature."
He estimates iPad-related recurring revenue from content purchases will approach ~30% of total iPad hardware revenue in CY11.
The firm is raising their CY10 iPad unit estimates from 2.2 million units to 4.0 million units. They think this could go to 7 million if the device lives up to its potential.
The firm is raising their 2010 EPS estimates by 6% due to the iPad. The firm now sees 2010 EPS of $12.75, up from $12 and the consensus of $12.14. The firm now sees 2010 revenues of $57.913 billion, up form $55.738 billion.
Market Moving News and Intelligence - Free Trial
http://www.streetinsider.com/premium_content.php
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