Apple (AAPL): Upgraded (again) at Oppenheimer

From Notable Calls

Oppenheimer is out with an upgrade on Apple (NASDAQ: AAPL) to Outperform ($135 tgt) from Sector Perform following yesterday's disclosures about Jobs' health. While the letters from Jobs and Apple's board raise more questions than they answer, they allay the central concern they raised two weeks ago: the risk of a hasty, unplanned leadership change.

Firm notes they don't know what ails Apple's CEO, and they're not ready to assume that a problem with a "relatively simple and straightforward" remedy is a problem that is itself "simple and straightforward." Still, it seems unlikely that Jobs, the board, and its counsel would disclose the prognosis of a six-month recovery if it were at odds with doctors' expectations. While that is no guarantee, they are satisfied that a sudden change of leadership is not imminent.

In short, while the leadership risk is not eliminated, it has become less acute and allows them, following this note, to refocus on the heart of the Apple story: the Mac share gains, the iPhone revolution, the cash in the bank and the cash that's still flowin.

Notablecalls: So you know it's out there. Remember how Opco downgraded the stock on Dec 17? Well, the stock is now higher when they downgraded it. I know it pays to be flexible and I really have respect for analysts that have the ability to quickly change their mind when proven wrong.

Still, leaves a bad taste in your mouth, doesn't it?

This upgrade is the one you need to fade.

Also note there's a story in LA Times saying Jobs' hormone imbalance could be caused by a tumor.

Yeah, fade anywhere above $96.70 (I see it trading there this AM)

PS: BMO making negative trading call on AAPL.....thinks company will guide March quarter revenues in the range of $7.1B-$7.5B and EPS to a range of $0.75-$0.85.....street at $8.4B/$1.15....."we believe the magnitude between March quarter guidance and current Street estimates is likely to pressure the shares near term"...they lower FY09 EPS estimate to $4.60 from $5.11

NC: My question now is - Will AAPL see red today?

For more calls go to http://notablecalls.blogspot.com/

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