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Oppenheimers' Bull/Bear Case For Apple (AAPL); $900 Valuation Vs. $420/Share

March 23, 2012 2:18 PM EDT
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Price: $171.48 -1.06%

Rating Summary:
    39 Buy, 25 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Oppenheimer maintains an 'Outperform' on Apple (NASDAQ: AAPL) price target of $700.00.

Oppenheimer analyst, Ittai Kidron, debates the bull & bear case scenarios. First, the bull: Kidron sees lots of continued growth for all of Apple's products. A closer analysis suggests an outlook closer to the $900/share level. Now, the bear case is close to the $420 level, but only if (big if) there's a complete halt to Apple's growth in '13/14. Of all the devices, Oppenheimer said a swing factor remains the iPhone and the continued expansion to carriers and customers.

Kidron's Bottom line: "Apple has been on a strong run, but we still see good reason to remain bullish. iPhone and iPad expansion are key drivers with room for upside as global penetration expands for both products. And with other opportunities not factored (TV), risk/reward remains very compelling."

Oppenheimers FY12 EPS estimate is $46.70, FY13 is $54.40 and FY14 at $60. Sees revenue growing from $171.13 bln in 2012 to $200.35 bln in 2013 and $220.83 bln in 2014.

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 $599.34 yesterday.


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