Jefferies Raises EPS Estimates on Apple (AAPL), Comments on Japan Trip

Jefferies reiterated their Buy rating and raised EPS estimates on Apple (NASDAQ: AAPL) following a recent visit to Japan.

Based on checks, analyst Peter Misek believes that Sharp is taking share in iPad 3, iPhone 5 LTE, and iTV displays. They also believe that the Samsung relationship continues to deteriorate.

The firm cut their calendar fourth quarter iPad shipment estimates from 17 million to 14 million, but is still above the Street consensus of 13 million. "We believe reports have overstated the iPad weakness as they have not accounted for inventory at Hon Hai, iPad 3 production starting in CQ4, and Sharp's share gain," Misek stated.

CQ4 revenues estimates were cut from $38.6B to $38.3B (consensus of $37.9B) but our EPS rises from $9.79 to $9.85 (consensus of $9.66). The firm sees FY2012 EPS of $35.50, up from $33.26 (consensus of $34.63).

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 $369.01 yesterday.

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