Apple's Price Target Changes Today Post Earnings
After reporting earnings yesterday, Apple (NASDAQ: AAPL) has seen a multitude of coverage regarding price target changes today. Listed below are some comments from research firms on their reasoning:
See Apple's upgrade by Societe Generale here.
Citigroup Raises PT from $700 to $720:
Citi commented, "We reiterate a Buy rating and raise our target to $720 on the heels of yet another quarter of blow-out iPhone results. iPhone shipments of 35.1M (+88% yoy) exceeded our recently revised estimate of 32.0M thanks to strong global demand and channel inventory restocking. While we continue to see potential for a merely in-line quarter at some point this year ahead of the iPhone 5 transition, valuation is not demanding and we would be aggressive buyers on any potential weakness."
Wedbush Securities Raises PT from $750 to $800:
Wedbush said in the report, "Given another blowout quarter, driven by robust iPhone sales, and solid iPad and Mac growth, upcoming product catalysts, and reasonably valuation at 8.5x adjusted CY13E EPS, Apple remains a top pick and on our Best Ideas list. While the next two quarters may be choppy, with a Mac refresh and likely introduction of an integrated Apple TV product, we recommend investors be positioned ahead of what will likely be a monster iPhone 5 upgrade late 2012."
FBN Securities Raises PT from $760 to $800:
FBN Securities commented in the report, "We retain our Outperform rating on AAPL and increase our PT from $760 to $800. AAPL had another blowout quarter, with revenue and EPS way above expectations. Although the beat was less when adjusted for changes in iPhone channel inventory, AAPL is still executing very well. AAPL's shares have been weak over the past few weeks due to a variety of concerns (e.g. slower MAC sales, concerns over subsidy cutbacks [AAPL clarified that this is likely only on new subs], and declining carrier activations), but we believe that the share weakness provides an attractive entry point for our #1-ranked equity in the FBN Technology Focus List."
Goldman Sachs Raises PT from $750 to $850:
Goldman Sachs commented, "Apple reported significant revenue and EPS upside. Revenues of $39.19 billion were far ahead of our $36.90 billion estimate and consensus of $36.81 billion. The iPhone segment represented the primary source of upside, as unit shipments of 35.1 million exceeded our 31.1 million unit estimate. Meanwhile, EPS came in at $12.30, exceeding our forecast of $10.18 and consensus of $10.06. The sharp upside in iPhones and a favorable commodity cost environment also allowed gross margins to come in at a record 47.4%, versus our estimate of 43.5%. Operating margins of 39.3% also represented a new record for the company."
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