RBC ups Apple stock target to $525, expects $40B in revenue
updated 09:45 am EST, Wed January 18, 2012
Analyst credits 'iPhone frenzy'
RBC analyst Mike Abramsky has raised his firm's target for Apple stock from $500 to $525. Apple is forecast to beat Wall Street consensus in its Q1 results, which are scheduled to be announced January 24th. In particular he links the performance to "unprecedented iPhone sell-through," resulting in stockouts in many regions.
Abramsky estimates that some 32 million iPhones shipped in the December quarter, with about 14.2 million units going to the US. Overall revenue and EPS predictions for the period have been raised to $40.2 billion and $11, from figures of $38.6 billion and $10, respectively. Contributing to that performance may be an estimated 13 million iPads and 5.1 million Macs.
Looking ahead to the March quarter, Abramsky expects that Apple will give guidance of $32 billion in revenue, with $8 in EPS. This is above Street guidance, which is just $31.8 billion and $7.94. The quarter is likely to be helped by expanding iPhone 4S sales, and a possible March launch of the iPad 3.
