Sterne Agee Lifts Price Target and Estimates on Apple (AAPL) Into iPad Refresh
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Price: $305.93 +0.22%
Rating Summary:
44 Buy, 29 Hold, 9 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
44 Buy, 29 Hold, 9 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Sterne Agee's Apple (NASDAQ: AAPL) analyst Shaw Wu used the announcement of the special iPad event on Wednesday, March 7, 2012 to raise his estimates and price target.
"While widely expected, we continue to believe this iPad refresh will likely be significant," Wu said. The new iPad 3 will likely have a higher resolution screen, much faster processor, Siri software, and 4G LTE wireless. "We view the potential
inclusion of 4G LTE as key with speeds approaching that of a quality personal computer experience," he commented.
Wu lifted his CY12 iPad estimates from 51 million units to 55 million units. He is not changing his March quarter iPad number of 10 million units as he doesn't expects volume shipments to occur until the June quarter.
His new FY12 financial estimates are $158 billion in revenue and $43.30 in EPS, up from 156.4 billion and $43.00, respectively. For FY13, his revenues estimates goes to $179 billion and EPS $48.50, up from $175.7 billion and $48.00.
Wu lifted his price target from $550 to $620 based on a conservative 12x multiple on his new CY12 EPS estimate of $43.24 plus $102 in net cash. He maintained a Buy rating.
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 $535.41 yesterday.
"While widely expected, we continue to believe this iPad refresh will likely be significant," Wu said. The new iPad 3 will likely have a higher resolution screen, much faster processor, Siri software, and 4G LTE wireless. "We view the potential
inclusion of 4G LTE as key with speeds approaching that of a quality personal computer experience," he commented.
Wu lifted his CY12 iPad estimates from 51 million units to 55 million units. He is not changing his March quarter iPad number of 10 million units as he doesn't expects volume shipments to occur until the June quarter.
His new FY12 financial estimates are $158 billion in revenue and $43.30 in EPS, up from 156.4 billion and $43.00, respectively. For FY13, his revenues estimates goes to $179 billion and EPS $48.50, up from $175.7 billion and $48.00.
Wu lifted his price target from $550 to $620 based on a conservative 12x multiple on his new CY12 EPS estimate of $43.24 plus $102 in net cash. He maintained a Buy rating.
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 $535.41 yesterday.
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