Susquehanna Raises Estimates on Apple (AAPL), Maintains Positive Rating
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Price: $445.15 +0.68%
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Susquehanna remains to feel Positive about Apple (NASDAQ: AAPL) as the market heads into the holiday season. The firm keeps their price target of $390 on the company, but did raise their EPS estimates for FY11 to $19.45 from $19.30 and to $21.82 from $21.61 for FY12.
The firm believes that the new CDMA iPhone will have a 6 million production rate during 1QCY11, up substantially from 4QCY10 of 500 thousand. Along with the iPhone the firm expects iPad production will also increase due to a larger demand in the product.
Apple offered a one day discount on Black Friday, which is very unusual for this company because they do not offer many discounts on their products. The firm was surprised to see that the company was offering a 6% discount on the fairly new iPad. Susquehanna has three thoughts on this situation, "1) Apple is taking advantage of its first-to-market lead in tablets through the Holidays to build its installed base; 2) moving inventory ahead of its 1QCY11 refresh; or 3) testing iPads price elasticity. Overall, our store checks were positive for Holiday sales with particularly high demand for iPad, 11" MacBook Air, and 15" MacBook Pro.
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $315.00 yesterday, with a 52 week range of $188.68-$320.18.
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The firm believes that the new CDMA iPhone will have a 6 million production rate during 1QCY11, up substantially from 4QCY10 of 500 thousand. Along with the iPhone the firm expects iPad production will also increase due to a larger demand in the product.
Apple offered a one day discount on Black Friday, which is very unusual for this company because they do not offer many discounts on their products. The firm was surprised to see that the company was offering a 6% discount on the fairly new iPad. Susquehanna has three thoughts on this situation, "1) Apple is taking advantage of its first-to-market lead in tablets through the Holidays to build its installed base; 2) moving inventory ahead of its 1QCY11 refresh; or 3) testing iPads price elasticity. Overall, our store checks were positive for Holiday sales with particularly high demand for iPad, 11" MacBook Air, and 15" MacBook Pro.
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $315.00 yesterday, with a 52 week range of $188.68-$320.18.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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