CSFB: Apple poised to ‘significantly exceed’ Q1 guidance; ‘Apple will ship 4.8 million iPods’

“Credit Suisse First Boston raised the target price for Apple Computer to $70 from $40 and said the computer maker is poised to exceed prior sales guidance for the fiscal first quarter ended December. ‘With this season’s hottest CE [consumer electronics] product and a new product cycle in its flagship iMac, Apple is poised to significantly exceed its initial December quarter outlook issued on its fiscal fourth-quarter conference call in October,’ the research firm said. CSFB said its new target price of $70 represents a 34 times multiple on 2006 net operating profit after tax, ‘a level we believe more than adequately reflects Apple’s long term prospects,'” Forbes reports.

“CSFB said, ‘We believe Apple will ship 4.8 million iPods in the December quarter and will once again exit the quarter with a substantial backlog, mostly in international locales. This iPod number will fall short of some overly aggressive expectations mainly due to a shortage of hard drives, a problem that has plagued the company for over a year, but one we believe will finally be remedied in the calendar first quarter,'” Forbes reports.

Full article here.


  1. yeeeehaaa!! boy do i wish that i was liquid about a year ago. Now all i can do is watch, but to all those who invested and made a bundle, congratulations. Could anyone spare a powerbook? or a G5?

    P.S. the request was for the investors only

  2. They say some confusing things in this article. For example, they don’t necessarily buy in to the whole ‘halo effect’ idea because the percentage of people who visit Apple’s retail stores who buy Macs has remained flat. But, hasn’t Apple been very vocal about the fact that the number of people visiting the stores has dramatically increased. If that is the case, shouldn’t the same percentage of a larger number of people mean higher sales?

  3. they say $70 ??

    Well…the “macdood financial group”.. sez the price of AAPL will shoot up to $100 …easy !!

    Who ya gonna believe ??…

    Them… or me ?

    ” width=”19″ height=”19″ alt=”LOL” style=”border:0;” />

  4. When it hits $100, start looking for a stock split. Don’t worry about the P/E ratio- the earnings of the current quarter will lower the P/E Ratio despite the high stock price. Regardless of quarterly profit, if Apple does not intro a Flash-based iPod the stock will dip on the news. That would be a good time to buy.

    Buy Low- Sell High

  5. Incidently it is not the shortage of hard drives that is slowing the iPod but a shortage of manufacturing capacity. From what I have read there is a plentiful supply of hard drives.

  6. winmacguy: Back in the mid 90’s Apple owned a manufacturing plant in Fountain CO that had the ability to produce 4 million computers, and other products of various natures a year, (used to work their). The great Gill Oatmealeo made the brilliant conclusion to sell it. Since that date most of Apples manufacturing capacity has been shipped off shore to plants and vendors that can’t respond as quickly as state side units did in the past, since Apple doesn’t own them. It’s the price that Apple pays for inventory control, and as the demand for Apples products grows, it’s not going to get better.

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