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Goldman Sachs Lifts Estimates, Price Target on Apple (AAPL) After iPad Refresh

March 8, 2012 6:57 AM EST Send to a Friend
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Goldman Sachs boosted estimates and its price target on Conviction Buy List-rated Apple (NASDAQ: AAPL) from $600 to $660 following the introduction of the new iPad and lower price point on the iPad 2.

The firm notes the announcement was largely as expected, though the device will feature 4G LTE and will not launch with Siri. With the voice dictation capability, this suggests that Siri could be added soon.

"Significantly, we believe the new iPad and the lower price point for the iPad 2 will enable Apple to continue its momentum and tablet market dominance, and we continue to expect rapid installed base growth in 2012 and beyond," the analyst said.

The mid-March availability of the new iPad could allow channel fill to boost March quarter shipments relative to expectations, the firm notes. They are raising iPad, margin, revenue, and EPS estimates for FY2012 through FY2014.

Goldman raised FY12 EPS from $40.36 to $42.52, FY13 from $44.55 to $50.29 and FY14 from $49.10 to $57.14. They raised FY12 revenues from $148.256B to $152.3815 billion, FY13 revenues from $166.088.5 billion to $177.9905 billion, FY14 was raised from $186.2349 billion to $204.5665 billion.

They now forecast iPad units of 53.4 million in FY2012, 67.7 million in FY2013, and 80.0 million in FY2014 up from prior estimates of 51.5 million, 64.0 million, and 75.4 million.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $530.69 yesterday.




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Analyst Comments, Analyst EPS Change, Analyst PT Change, Hot Comments

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Goldman Sachs Conviction Buy List, Goldman Sachs

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