Deutsche Bank Sharply Raises Estimates, PT on Apple (AAPL)
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Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
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Deutsche Bank boosted its price target on Apple (NASDAQ: AAPL) from $775 to $850 with the iPhone 5 officially on sale.
"iPhone 5 will begin shipping today as early demand indicators are tracking very strongly. We believe iPhone 5 demand is extremely robust (simultaneous form factor and LTE upgrade) and with a fast geographic ramp our prior est's were too conservative. "
The firm raised iPhone estimates by 5M in CY12 and 10M in CY13 and raised CY13 EPS to $60 (vs. prior $56).
With a 4-week product lead-time, this suggest that 1/3 of the holiday quarter is already booked, the firm said.
"We estimate there are ~375M iOS users currently and ~245M active iPhone users globally (~3 year life). Of these, we estimate ~50M are over 2 years old and eligible for upgrade / new contract without early penalty. Further, gray market prices for iPhone 4S on eBay are ~$300 suggesting an affordable upgrade path for existing, in-contract customers. In the US alone, we believe there are ~75M active iPhone users of which 17M (or 22%) are upgrade eligible without penalty (i.e. contracts greater than 2 years)."
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 $698.70 yesterday, with a 52 week range of $354.24-$703.99.
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"iPhone 5 will begin shipping today as early demand indicators are tracking very strongly. We believe iPhone 5 demand is extremely robust (simultaneous form factor and LTE upgrade) and with a fast geographic ramp our prior est's were too conservative. "
The firm raised iPhone estimates by 5M in CY12 and 10M in CY13 and raised CY13 EPS to $60 (vs. prior $56).
With a 4-week product lead-time, this suggest that 1/3 of the holiday quarter is already booked, the firm said.
"We estimate there are ~375M iOS users currently and ~245M active iPhone users globally (~3 year life). Of these, we estimate ~50M are over 2 years old and eligible for upgrade / new contract without early penalty. Further, gray market prices for iPhone 4S on eBay are ~$300 suggesting an affordable upgrade path for existing, in-contract customers. In the US alone, we believe there are ~75M active iPhone users of which 17M (or 22%) are upgrade eligible without penalty (i.e. contracts greater than 2 years)."
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 $698.70 yesterday, with a 52 week range of $354.24-$703.99.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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