Back The Truck Up on Apple (AAPL) Now - Analyst
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Price: $317.31 --0%
Rating Summary:
45 Buy, 28 Hold, 8 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 1
Rating Summary:
45 Buy, 28 Hold, 8 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 1
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UBS added Apple Inc. (Nasdaq: AAPL) to its Key Call List Thursday, saying it is a "superior" company trading at a market multiple.
The firm notes that shares are trading at a multiple in-line with the S&P 500 - 13.9x FY2011 EPS versus 13.7x for the S&P 500. This market multiple comes despite projected 64% 2011 EPS growth, which could still offer more upside. The current multiple is a 10-year low for Apple.
The group said short-term supply chain concerns are likely immaterial, citing: 1) iPad demand is strong and we see minimal impact from fire at Hon Hai plant as it is a secondary location with <20% of iPad volumes. 2) iPhone 3GS/4 order cuts are typical ahead of a new launch (iPhone 5).
They also see EPS upside from potential reversal of warranty accruals. They said if Apple reduced its reserves to be in-line with claims ($513M) for past three quarters, potential forward EPS upside could be approximately $0.41.
Upcoming catalyst for Apple are: 1. June 6th World Wide Developer Conference. Potential cloud services announcements, as well as iOS 5 clarity, and OS X Lion release; 2. iPhone 5 launch. Timing uncertain, but potentially delayed until September.
The firm notes that shares are trading at a multiple in-line with the S&P 500 - 13.9x FY2011 EPS versus 13.7x for the S&P 500. This market multiple comes despite projected 64% 2011 EPS growth, which could still offer more upside. The current multiple is a 10-year low for Apple.
The group said short-term supply chain concerns are likely immaterial, citing: 1) iPad demand is strong and we see minimal impact from fire at Hon Hai plant as it is a secondary location with <20% of iPad volumes. 2) iPhone 3GS/4 order cuts are typical ahead of a new launch (iPhone 5).
They also see EPS upside from potential reversal of warranty accruals. They said if Apple reduced its reserves to be in-line with claims ($513M) for past three quarters, potential forward EPS upside could be approximately $0.41.
Upcoming catalyst for Apple are: 1. June 6th World Wide Developer Conference. Potential cloud services announcements, as well as iOS 5 clarity, and OS X Lion release; 2. iPhone 5 launch. Timing uncertain, but potentially delayed until September.
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