updated 11:30 am EDT, Thu July 26, 2007
AmTech raises estimates
Apple's record June quarter serves as further proof that market bears are too pessimistic about the company, according to American Technology Research senior analyst Shaw Wu, who raised his full-year estimates despite Apple's own conservative guidance. "For fiscal year 2007, we are now modeling $23.6 billion and $3.65 (from $23.5 billion and $3.50) and for fiscal year 2008, $29.5 billion and $4.25 (from $30.2 billion and $4.10)," the analyst wrote in a research note obtained by MacNN. Wu points to Apple's continued ability to surprise, showcasing its ability as a large-cap multi-national company with a broad end-to-end portfolio -- which includes its Macs, iPods, iTunes Store, iPhone, and Apple TV. "We believe bears remain too pessimistic in underestimating Apple's profit potential and ability to generate strong cash flow," Wu said. "Moreover, bears have also underestimated bulls' ability to form more realistic expectations and focused too much on overzealous and sometimes outright irrational estimates." American Technology Research raised its 6-12 month price target from $165 to $185, but the firm warns that Apple shares will likely see a pull-back in the slower summer months -- particularly at the $135-140 level.