updated 11:05 am EDT, Wed April 21, 2010
Analysts call for ceilings as high as $350
Apple's stock value has risen sharply following yesterday's second-quarter results, but it may have yet more room to grow, according to analysts. Pricing climbed more than $13 in overnight trading, and as of this writing it sits at approximately $259. RBC Capital Analyst Mike Abramsky has increased his target for the stock to $350, largely on the basis on the iPhone, and the future of the iPad. Third-quarter iPad margins are expected to slot between 18 and 26 percent, and 1.5 to 2.5 million units could translate into an extra $1 to $1.6 billion in revenue. FY2011 iPad numbers have been bumped from 8 to 9.2 million.
Piper Jaffray analyst Gene Munster has pushed his target to $323, citing not only Q2 iPhone sales but the prospect of a new iPhone around the corner. Oppenheimer's Yair Reiner has chosen a $320 target, complimenting not only the iPhone but the iPod, the death of which has allegedly been "greatly exaggerated" given that units were down just 1 percent year-over-year. Shaw Wu of Kaufman Bros. has increased his target for the second time in the space of a week, from $305 to $315. Apple's guidance for the next quarter is less conservative than usual, according to Wu.
JP Morgan analyst Mark Moskowitz has opted for $316. He suggests that revenue and earnings growth will stay over 20 percent during the next few years, as Apple has plenty of opportunities including iAd, Mac and iPad expansion, higher profit margins, and deeper iPhone penetration in China and the US, the latter through the addition of one or more carriers.
UBS' Maynard Um has shifted his figure from $280 to $315, echoing Wu's reasoning. Morgan Stanley's Katy Huberty, finally, has scaled her target from $250 to $275, predicting high margins in Q3 from things like accessories, the iPad 3G and general component costs.