Needham & Company Boosts Price Target On Apple (AAPL) to $375, Citing iPad, iPhone and Mac
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Price: $166.90 +0.64%
Rating Summary:
39 Buy, 25 Hold, 7 Sell
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Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
39 Buy, 25 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Needham & Company lifted their price target on Apple (Nasdaq: AAPL) sharply today from $280 to $375, citing stronger than forecast iPad, iPhone and Mac sales. In addition, the iPhone upgrade cycle appears to be occurring much faster than previously assumed. The firm maintained its Buy rating.
The firm sees EPS of $13.95 and $15.50 for 2010 and 2011 respectively.
The firm says "the sky’s the limit" on the iPad. With software and content applications quickly developed for the iPad, it has proven popular with commuters who have discarded their newspapers. In addition, the iPad is quickly finding its way into the healthcare industry with 9.3 million doctors worldwide along with14.5 million nurses. Arguably the biggest surprise since the iPad’s launch has been its invasion of the business market, according to the firm. The firm sees 10 million iPad units in 2010, 22.93 million in 2011, and an amazing 99.9 million units in 2019.
The firm said the contribution of the iPhone to Apple's valuation increased by $36.01, or 23%. This is due to a faster than expected upgrade cycle from three years to two years. In 2010, the firm sees 59.3 million iPhone units, or 19% market share. They sees this rising to 193.4 million in 2019, or 25% market share . The firm's forecast does not assume a Verizon (NYSE: VZ) iPhone launch, which could potentially double the iPhone's share of the U.S. market.
The firm also said the Halo effect continues to benefit the Mac. In the firm's February model, they forecasted that Apple would sell nine million Macs in calendar 2010. Based on the Mac's current sales trajectory, this number could be more than 50% higher at around 14 million units.
The firm sees EPS of $13.95 and $15.50 for 2010 and 2011 respectively.
The firm says "the sky’s the limit" on the iPad. With software and content applications quickly developed for the iPad, it has proven popular with commuters who have discarded their newspapers. In addition, the iPad is quickly finding its way into the healthcare industry with 9.3 million doctors worldwide along with14.5 million nurses. Arguably the biggest surprise since the iPad’s launch has been its invasion of the business market, according to the firm. The firm sees 10 million iPad units in 2010, 22.93 million in 2011, and an amazing 99.9 million units in 2019.
The firm said the contribution of the iPhone to Apple's valuation increased by $36.01, or 23%. This is due to a faster than expected upgrade cycle from three years to two years. In 2010, the firm sees 59.3 million iPhone units, or 19% market share. They sees this rising to 193.4 million in 2019, or 25% market share . The firm's forecast does not assume a Verizon (NYSE: VZ) iPhone launch, which could potentially double the iPhone's share of the U.S. market.
The firm also said the Halo effect continues to benefit the Mac. In the firm's February model, they forecasted that Apple would sell nine million Macs in calendar 2010. Based on the Mac's current sales trajectory, this number could be more than 50% higher at around 14 million units.
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