Sterne Agee Boosts Estimates and Price Target on Apple (AAPL) to $840

September 18, 2012 9:21 AM EDT
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Sterne Agee's Shaw Wu lifted estimates and its price target on Apple (NASDAQ: AAPL) from $820 to $840 after the company announced iPhone 5 pre-orders topped 2 mm in 24 hours, beating the previous record of 1 mm held by iPhone 4S.

"We continue to believe many underestimate iPhone 5 in that it is a significant update and will drive a powerful product cycle. We are raising our estimates and PT again but believe Dec. quarter upside could be limited by supply constraints on new in-cell touchscreens," Wu said.

The firm now believes that AAPL will likely ship 27 million iPhones for the September quarter, up from our recently raised view of 26 million. They are raising our December quarter forecast by only 500k units to 46.5 million (from 46 million) due to our continued supplier checks indicating production constraints on new in-cell touchscreens.

For the September quarter, they are now at $36.6 billion in revenue and $8.80 in EPS (from $36 billion and $8.65 in EPS) vs. consensus at $35.7 billion and $8.69 in EPS and guidance at $34 billion and $7.65 in EPS. For FY12, $157.1 billion and $44.25 in EPS (from $156.6 billion and $44.11) vs. consensus at $156.1 billion and $44.18 in EPS and for FY13, $192.5 billion and $51.40 in EPS (from $191.4 billion and $51.20 in EPS) vs. consensus at $193 billion and $52.84 in EPS.

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 $699.78 yesterday.

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