AmTech on Apple story
Despite slower-than-expected Mac sales, however, Apple managed to raise the average selling price of its Mac systems by 9 percent quarter over quarter to $1,501 -- the highest level in eight quarters. March quarter guidance was more conservative than expected at $4.8-4.9 billion and $0.54-0.56 over consensus at $5.2 billion and $0.60.
"In typical Apple fashion, [Apple] provided conservative guidance below consensus for the fifth quarter in a row to keep expectations in check," the analyst commented. "While we are moderating our March quarter view to $5.1 billion and $0.60 (from $5.2 billion and $0.63), we are raising our full-year estimates and price target due to our anticipation of higher margins."
American Technology Research is modeling $23.1 billion and $3.00 for fiscal year 2007, up from $22.9 billion and $2.85. The firm is modeling $28.2 billion and $3.60 for fiscal year 2008, up from $28.1 billion and $3.50.
"Our new 6-12 month price target is $115, based on a 27x multiple on our calendar year 2008 earnings per share of $3.74 + $13.43 in net cash."