UBS reiterates ‘buy’ on Apple, raises estimates, sets share target price to $54

Analysts at UBS have reiterated their “buy” rating on Apple Computer (AAPL) and raised their estimates for the company. The target price is set to $54. UBS also stated that Apple Computer’s $3.5 billion revenue and $0.32 EPS guidance for 4Q reflects low iPod sales assumptions and the company’s cautious stance on Mac sales due to the upcoming transition to Intel. UBS raised EPS estimates for 4Q05 from $0.34 to $0.35 and for 2006 from $1.60 to $1.65, respectively.

Related MacDailyNews articles:
Financial Times on Apple Computer’s results: ‘only a matter of time before this apple falls’ – July 14, 2005
Apple shares rocket in heavy early trading – July 14, 2005
Apple smashes street with record revenue, earnings; shipped 6.155 million iPods – July 13, 2005


  1. …but i did post first.

    other than that… is has been fun to watch the watchers and pundits struggle with making predictions about Apple… especially the ones who precicted that Apple wouldn’t make their expected goals. imagine their surprise when they far exceded them leaving the nay sayers no other recourse but to say…

    “Um… yea, Apple is doing fine NOW… just wait for next quarter! You’ll see! I’ll be right next time!”

  2. Part of the expanded buy rating is that Apple increased its savings to $7.5B from $7B and so is worth slightly more.

    Having all that cash lying around and seeing it increase quarter by quarter makes me wonder what Apple is going to do with it. IIRC, Apple has never had this much cash, adjusted for inflation.

  3. Thing is, Apple is a rule breaker, and when you have someone who doesnt follow cookie-cutter standards set forth by everyone else, it’s hard to predict what will happen next. This is why so many financial pundits are wrong when it comes to predicting Appl’es future.

    Face it, these guys don’t have any idea what ‘out of the box’ thinking is, which is why they are in the business they are in to begin with.

    MW ‘because, just …because

  4. Look, guys, Apple is doing all of us Mac fans a favor with that low projection for Q4! This is a gimmee if I’ve ever seen one–a perfect buying opportunity for those of us who actually “get” Macs and Apple. Any mac user who doesn’t make a KILLING over the next couple of quarters by buying Apple stock is a dope.
    Don’t know about you, but I’m already picking out my house on the shore…

  5. I’ve been a stock owner for years — since long before the stock split. It’s always been a good investment, but it’s even more-so now. Just don’t trade Apple stock like poker chips. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  6. With Apple stock hovering in the low 40s, it has surpassed the 37.5 (adjusted for split) that it reached at the height of the stock market boom and before the crash.

    I’m sure there are many tech companies that have done that.

    Dell is still 40 % down from those highs and M$ down 50%.

  7. Neil,

    Let’s keep it our secret… please! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    How do you think that will fair on APPl when/if everyone else starts to recover?

    Let’s discuss it with a meal and a beverage or two.

  8. My estimate is 100$ within 8 months.
    Then again… I need to have real money out of the stock.. dividend!
    Stock without dividend is rubish
    ” width=”19″ height=”19″ alt=”angry” style=”border:0;” />

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