toggle

AAPL Stock: 116.47 ( + 0.16 )

Printed from http://www.macnn.com

Apple stock to reach $225 level?

updated 09:50 am EDT, Mon October 8, 2007

Apple stock to hit $225?

Although having only broken the $160 mark on Friday, Apple's stock value may yet go as high as $225, one analyst predicts. The company will announce its fourth-quarter results on October 22nd, and revenues of $6 billion are predicted, with earnings-per-share (EPS) of $0.83; yet more optimistic appraisals suggest revenues between $6.2-6.3 billion, with $0.87 EPS. By September 30th, 2008, concensus suggests these figures may climb as high as $29.7 billion with $4.48 EPS, due to several ongoing developments.

Apple is for instance in the middle of a major upgrade cycle, having recently introduced new aluminum iMacs, a new version of iWork, and several new iPods including the iPod touch. Critically, the iPhone is only beginning its reception with the public, and Apple has recently announced that production of the device will grow from 3.6 to 4.8 million units by the end of the year, without accounting for European iPhone deals or next year's Asian introduction. Revenues for the device will only be fully realized at the end of the first two-year AT&T contracts, and the price cut from $599 to $399 has been drawing in customers that might not otherwise have ventured near.

The new iPods have been generating positive reviews, the Seeking Alpha analyst says, and the installed base is now over 110 million. Neither are the units eating into iPhone sales, "Apple insiders" are said to claim. It is predicted meanwhile that the immediate fourth-quarter results will show that Apple is increasing revenue from its new Macs, bolstered an extra amount by the high margins of add-on software.

Arguing for a $225 price target, Seeking Alpha says that following the results announcement, a number of analysts will move their price targets to at least $200. Apple's market value may also soon eclipse that of IBM, as the latter is at $158 billion, while Apple has already grown to reach $140 billion. An overtake may happen by the beginning of 2Q 2008, and possibly earlier.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. Macola

    Joined: Dec 1969

    0

    Anal-ysts

    Pump and dump!

  1. climacs

    Joined: Dec 1969

    0

    holy cow...

    my $2,700 investment in AAPL is now worth ~$50,000. Why oh why did I not buy a lot more!

  1. eldarkus

    Joined: Dec 1969

    0

    climacs

    I hear ya man!! My $1000 is now worth $25k!! I should have mortgaged the house!!

  1. 83caddy16v

    Joined: Dec 1969

    0

    in at what price?

    what price are you guys in at? less than $20/share? I'm in at $40 and happy with the climb, but damn, you guys are rolling in profit! congrats!

    yes, we all should have bought more! and I see Google crossed over $600 this morning.

  1. ydnar1

    Joined: Dec 1969

    0

    re:in at what price?

    i invested just shy of $3000 when it was at $62...too bad the stock won't split from what I hear.

  1. mjgrothaus

    Joined: Dec 1969

    0

    I got in just above $6!!!

    I got in just above $6 ($12 pre-split!). Now its worth over $100,000!!!!!

    It's going to $300 a share in 18 months!

  1. TheBum

    Joined: Dec 1969

    0

    pity me

    I waited to get in until it reached $67 in Feb. 06. I'm only averaging 7% profit...per month!

  1. Constable Odo

    Joined: Dec 1969

    0

    C'mon Apple...

    These analysts better not be stock-teasing me or I'll be a very unhappy camper. Don't just keep saying it's going above $200 when the stock is sitting at $163 or so. That's a effin' huge gap.

    My joy won't be complete until the iPhone outsells all BlackBerrys by two to one.

  1. rtbarry

    Joined: Dec 1969

    0

    in at 10...

    ...daddy gets a new pool and poolhouse :-)

    i love listening to the "market experts" who would have had me sell at least 10 different times over the last several years.

    except for some speculative biotech stuff where my strategy was gambling ("buy 10 and hope 1 is a landslide"), i always buy companies i research, believe in, and live with in my daily life. and i don't buy it unless i'm comfortable holding them for the medium to long term. i don't sell them on news announcements that cause dips, or market downturns. that's when you LOSE.

    every single pick has outperformed the market by multiples.

  1. climacs

    Joined: Dec 1969

    0

    re: in at what price

    bought 150 shares @ $19.50, pre-split, or $9.75 split-adjusted. It's in my retirement account so fortunately I can't touch it or I would be tempted to cash in at least part of it. Instead I guess I'll just have to watch it keep soaring for a while! My only dilemma is, at what point do I cash at least part of it in to lock in my gains and diversify? It's a good problem, but AAPL is going to form a disproportionately large share of my portfolio at this rate!

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

MaxUpgrades 512GB Retina MacBook Pro SSD

Apple's Retina line of MacBook Pro notebooks have been impressive, right from their debut in 2012. Thinner than the previous model, t ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a for ...

toggle

Most Commented