Color on AmTech's Upgrade of Apple (AAPL); Sets PT at $100

January 15, 2009 11:35 AM EST
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Price: $120.00 --0%

Rating Summary:
    60 Buy, 10 Hold, 5 Sell

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    Up: 10 | Down: 16 | New: 53
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Broadpoint.AmTech upgraded Apple (Nasdaq: AAPL) from Neutral to Buy this morning, also setting a $100 price target on the stock. The report follows news yesterday that, sadly, Apple's famed CEO, Steve Jobs, will take a medical leave until June.

The firm believes that Jobs' move "is the right thing for Apple" and also that COO, Tim Cook, will be able to capably handle tasks as interim-chief. Broadpoint.AmTech said it sees Cook's 6 month stay at the top of Apple as a "'trial period' for Tim and if he does well, Steve will become a senior advisor to Apple and pass the CEO baton over to Tim."

With shares of Apple trading below $80 in after-hours trading, AmTech said valuation is too cheap to ignore. The firm is currently estimating Q1 GAAP EPS of $1.08 and CY09 EPS of $4.77, about 6% and 12% below the Street's estimates, respectively, and that this level of earnings is already priced in at current levels. Moreover, the firm is anticipating the launch of a low-end iPhone in the first half of this year, and believes that "this could add ~$15 to the stock as well."

Shares of Apple are currently down 4.5% to $81.52.

Apple, Inc. designs, manufactures, and sells personal computers, portable digital music players, and mobile communication devices, as well as related software, services, peripherals, and networking solutions worldwide.

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