Analyst sets $205 price target for AAPL
updated 09:25 am EDT, Fri July 20, 2007
Piper boosts stock goals
Having released some initial predictions on Thursday, analysts with Piper Jaffray have increased their expectations for Apple stock performance and price target of $205, based on both revenue sharing with AT&T and now booked iPhone revenue. The group is predicting additional earnings per share (EPS) of $1.91 in 2009, and potentially as much as $2.49, which would bring the total growth for that year to $7.31. The determining factor will be how many iPhones Apple will be able to sell -- numbers could fall anywhere between 25 and 45 million, but will need to come closer to the latter to meet Piper's estimates.
This view is supported mainly by a belief in the "game-changing" nature of the iPhone, which is hoped will trigger a turning point similar to that of the iPod. Piper is also siding with suggestions that much cheaper iPhones are inbound, since they believe the average cost will be approximately $330.
The company raised its price target on Apple stock from $160 to $205.
Fresh-Faced Recruit
Joined: Aug 2006
Wow
That's a bold prediction. I'm used to seeing weak-kneed predictions that likely to be fulfilled in a couple weeks if current trends continue. $205 is nearly a 50% increase over the current price (and all-time high).