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.
Wow
07/20, 10:14am reply
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).
malax
Fresh-Faced Recruit
Joined: Aug 2006
And your point is?
07/20, 10:26am reply
Ok! Well two years ago Apple was selling for $38 and today they are at $141.
The rest of the market is crashing this morning. Dow is now down $112, Google is now down $35 and who is up today....... APPLE. Now up over $1.15.
Apple has outperformed many companies and most if not all computer & phone companies in the past two years. $205 is understated if Apple continues the growth they have recently.
I only wish I was not a pauper and had some money to invest in Apple.
jhawk95
Fresh-Faced Recruit
Joined: Oct 2006
OT: comment weirdness...
07/20, 10:27am reply
what's with the separate, impossible login on some of the stories? example: the BMW/iPhone BT integration article.
seems like a separate blog software interface, that doesn't carry over credentials from here. and with no way to create an account.
rtbarry
Fresh-Faced Recruit
Joined: Aug 2001
wish I'd bought more
07/20, 10:52am reply
I don't want to brag (too much) but my little investment in AAPL 6 years ago is worth 15x now. The nice thing is that this is not dot-com hi-tech hype: Apple is doing all the right things now and the valuation, though still based on some rosy assumptions about iPhone, is more or less justified.
The only thing that could go wrong is if something happens to Steve... he doesn't have any dangerous hobbies, does he?
climacs
Fresh-Faced Recruit
Joined: Sep 2001
What're you talking about
07/20, 12:29pm reply
When you say "they believe the average cost will be approximately $330," do you mean the average cost or the average selling price. There's a significant difference, of course.
AllenKelson
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Joined: Jul 2007