Goldman Sachs Lifts Price Target and Estimates on Apple (AAPL), Says Buy Ahead of March Results
Tweet
Share
E-mail
Get Alerts AAPL Hot Sheet
Price: $169.34 +0.19%
Rating Summary:
39 Buy, 25 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
39 Buy, 25 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Join SI Premium – FREE
Goldman Sachs boosted estimates and its price target on Conviction Buy List-rated Apple (NASDAQ: AAPL) from $700 to $750 ahead of second quarter results next week. The firm said despite recent volatility shares are "very attractive" at current levels. They would be buyers ahead of the results.
"We expect solid March-quarter upside, which is likely to trigger healthy increases in iPhone, iPad and overall earnings expectations for the full year," the analyst said.
They said investor concerns over a "catalyst-light" June quarter are misguided as this will be the first full quarter with a refreshed iPad, a lower-priced iPad 2, and a fully ramped iPhone distribution channel. "The June quarter is when many of the recent catalysts begin to fully manifest into earnings power," they said.
Goldman also said recent concerns on Mac sales and a potential reduction in iPhone subsidies, are both are "overblown." On Macs, the firm said while growth will slow to 14% this is above recently reduced investor expectations. On iPhone subsidies, the firm said while some carriers will attempt to reduce the subsidy burden and tighten upgrade policies, many more will likely hold steady to capture share from the latter camp. "In the end, all carriers are attempting to migrate their installed bases from feature phones to data-centric smartphones, and amid this transition, we think the risk of losing market share in the iPhone sub-segment is likely to be too great to ignore."
The firm raised Q2 revenue and EPS to $36.9 billion and $10.18, versus $34.2 billion and $9.36 previously. This compares to the consensus of $36.32 billion and $9.89. For CY2012, they now expect revenues and EPS of $166.9 billion and $45.76, versus $158.2 billion and $43.86 previously. For CY2013, they now expect revenues and EPS of $200.0 billion and $56.57, from $186.6 billion and $53.00 previously.
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 $609.70 yesterday.
"We expect solid March-quarter upside, which is likely to trigger healthy increases in iPhone, iPad and overall earnings expectations for the full year," the analyst said.
They said investor concerns over a "catalyst-light" June quarter are misguided as this will be the first full quarter with a refreshed iPad, a lower-priced iPad 2, and a fully ramped iPhone distribution channel. "The June quarter is when many of the recent catalysts begin to fully manifest into earnings power," they said.
Goldman also said recent concerns on Mac sales and a potential reduction in iPhone subsidies, are both are "overblown." On Macs, the firm said while growth will slow to 14% this is above recently reduced investor expectations. On iPhone subsidies, the firm said while some carriers will attempt to reduce the subsidy burden and tighten upgrade policies, many more will likely hold steady to capture share from the latter camp. "In the end, all carriers are attempting to migrate their installed bases from feature phones to data-centric smartphones, and amid this transition, we think the risk of losing market share in the iPhone sub-segment is likely to be too great to ignore."
The firm raised Q2 revenue and EPS to $36.9 billion and $10.18, versus $34.2 billion and $9.36 previously. This compares to the consensus of $36.32 billion and $9.89. For CY2012, they now expect revenues and EPS of $166.9 billion and $45.76, versus $158.2 billion and $43.86 previously. For CY2013, they now expect revenues and EPS of $200.0 billion and $56.57, from $186.6 billion and $53.00 previously.
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 $609.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- TechnipFMC (FTI) PT Raised to $30 at BTIG
- Procter & Gamble (PG) PT Raised to $185 at Argus
- First BanCorp (FBP) PT Raised to $21 at Keefe, Bruyette & Woods
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst PT Change, Hot CommentsRelated Entities
Goldman Sachs Conviction Buy List, Goldman Sachs, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
