BMO analyst cuts stock target for Apple
updated 01:20 pm EDT, Thu September 25, 2008
BMO cuts AAPL stock target
Expectations should be lowered for Apple stock, even though the company is doing well in many regards, argues BMO Capital's Keith Bachman. The analyst has reduced his price target from $190 to $180, citing a "weak economy" that has "started to take a toll on Apple’s systems business." BMO's estimate for September-quarter Mac shipments has shrunk from 2.86 million to 2.71, and in FY09, the firm is predicting shipments of 12 million Macs instead of 12.6. Total revenue expectations for FY09 have been reduced to $40 billion from $40.6.
The EPS estimate for that year has been raised from $5.80 to $5.82, however, as has the gross margin figure, now expected to be 32 percent instead of 31.5. Margins may prove even better in the short term, and are currently pegged for at least 32.6 percent in Q408, generating EPS of $1.09. There is a chance margins may surpass expectations, Bachman suggests, which could raise EPS to anywhere between $1.10 and $1.15 for the quarter.
iPhone sales may also compensate somewhat for decreased Mac numbers, as it is predicted that Q4 will now see 5 million iPhone shipments, instead of 4.1. The 2009 forecast remains at 23.4 million.
Fresh-Faced Recruit
Joined: Nov 1999
Uh-Huh
Another ANALyst who doesn't know sht from Shiinola chimes in with his divinations. Remember, prognostication can be a very difficult process . . . especially when it involves the future. Let's all iCal this a*hat and see how his advice stacks up against next year's results.