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AAPL Stock: 94.72 ( + 0.78 )

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Analysts raise AAPL price targets based on Verizon iPhone

updated 03:30 pm EST, Thu December 9, 2010

Android competition tempers expectations

(Updated with corrected Stifel Nicolaus info) Two analysts have raised their price targets for Apple stock, says Fortune. Stifel Nicolaus' Doug Reid has pushed his target from $360 to $390, working on "increased confidence" of a Verizon iPhone shipping in early 2011. He suggests that a mid-February release date could generate an extra 800,000 iPhone sales for the year versus a mid-March date, making for an adjusted total figure of 63.3 million.

Merrill Lynch's Scott Craig has increased his price target from $415 to $420. "We expect a Verizon iPhone to be introduced in early C2011," he notes. Craig expects Apple to gain an extra 6 million iPhones through Verizon in 2011, and 8 million more in 2012. Even this is a conservative estimate, he comments.

"Historically," writes Craig, "when the iPhone has been added to a second carrier in a country (France, Norway, Canada, UK, etc), iPhone shipments increased nearly 1:1 with subscriber base, indicating minimal/no share loss at the incumbent carrier." The conservativeness stems from the threat of Android smartphones, which now compete with the iPhone in features and are Verizon's primary sellers. Craig also notes that some Verizon sales may still cannibalize AT&T's numbers.






by MacNN Staff

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Comments

  1. Constable Odo

    Joined: Dec 1969

    -1

    Has anyone seen a stock that is so

    impervious to multiple target price upgrades as Apple? I'm not saying it's an indicator or anything, but when a stock gets upgraded like that and goes down in response to those upgrades even slightly, it just seems a bit strange. I've certainly never done a detailed study on the topic, but it usually seems that downgrades drive a stock down and upgrades drive it up on the same day the upgrade is issued. Am I wrong? I'm beginning to think that the Verizon talk might really be just a false rumor.

  1. testudo

    Joined: Dec 1969

    0

    @Odo

    Not strange. Reasons:

    1) It's one analyst. What do the other analysts have to say?

    2) What are the other analysts targets? This analyst is pushing his target to $390. If everyone else already pushed to $400, then he's just getting caught up.

    3) It's an analyst. All anyone does is say they're idiots who don't know what they're talking about. And also complain about the sheep who listen to what they say and just suck it up. So, maybe it's a sign that investors don't listen to them anymore.

    4) What are the current investors thinking in terms of their projections? They may not care about the analyst and already decided that they're expecting $400. Therefore, no movement.

    5) What else is happening? It could be that at the same time as this one uptick, some investors have decided to sell before the year is out. Thus the sales will help push the price down as supply has increased along with the demand.

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