Needham maintains strong buy on Apple stock
updated 03:10 pm EST, Tue December 16, 2008
Needham on Nov. sales
Needham & Co. is maintaining a strong buy rating on Apple stock, favoring what it calls Apple's underlying fundamentals over predicted softer sales in December. Market research firm NPD's data shows a slowing of Mac sales for the December quarter, with November sales falling 1 percent after a 28 percent rise in October. Desktop sales were off in November by 35 percent, but notebooks increased in balance.
The weak November numbers are believed to have been triggered by the current recession, which is expected to run through at least mid-2009. Needham says it is thus reducing estimates on 2009 revenue from $38.2 billion to $36.6 billion, and earnings per share from $5.65 to $5.20.
These figures are described as modest adjustments however, the impact of the economy being lessened thanks to increasing iPhone projections going into 2009. The amortized payout of iPhone revenue over eight quarters should build growth throughout the 2009 fiscal year.
Fresh-Faced Recruit
Joined: Aug 2007
Nice take on Apple's
unlikely share price target. Apple appears to be a shark that's stopped swimming forward. It seems to have found a place it can rest in a weak ocean current to supply it's gills with oxygen. Eight out of ten analysts have decided that Apple's sales and stock price have crapped out and WS agrees. This analyst's view is completely unrealistic in my opinion. An atomic bomb could move Apple's stock up even though the company is healthy.