“Supply chain checks suggest that Apple should be able be to produce 10 million iPod nanos before the end of the calendar year, and given the strong initial customer reception to the product, we think these units will sell through,” Citigroup Analyst Richard Gardner wrote in a note to clients today.
Tomi Kilgore reports for MarketWatch, “Citigroup Analyst Richard Gardner reiterated his hold rating on Apple’s stock, but lifted his price target to $55 from $40. He also raised his fourth-quarter earnings estimate to 41 cents a share from 36 cents and his 2006 forecast to 59 cents a share from 46 cents.”
Full article here.
He had it at $40 until today?! Now he’s got it at $55 per share. Don’t go way out on a limb there, Mr. Gardner.
Related articles:
UBS raises target price on Apple Computer, says iPod nano could be ‘key product’ into 2006 – September 26, 2005
Apple Computer shares hit all-time high, top $54 in early trading – September 26, 2005
Bear Stearns: ‘We see Apple making further PC share gains,’ raises price target to $58 – September 23, 2005
CSFB: Apple Computer is top pick in PC hardware sector – September 22, 2005
Banc of America reiterates ‘buy’ rating on Apple, raises target price and EPS estimates – September 22, 2005
Deutsche Bank predicts Apple will sell 43 million iPods in 2006 – September 21, 2005
Apple shares up strongly, hit new all-time high on report of better than expected Mac sales – September 20, 2005
Morgan Stanley sets price target of $60 for Apple, AC Research reiterates ‘accumulate’ rating – September 09, 2005
Apple Computer shares hit all-time high, top $50 in early trading; analysts up target prices – September 08, 2005
Apple continues to grow worldwide Macintosh market share – July 25, 2005
Gartner: Apple grows shipments 31 percent in Q2 2005, moves from 5th to 4th in U.S. market share – July 18, 2005
IDC: Apple gains U.S. market share at double overall market rate, up to 4.5 percent for Q2 2005 – July 18, 2005
the guy should be fired. Who needs an analyst who tells you what the price currently is … dummy
10 million too easily scratched-up nanos all recalled or returned….
gulp!!!
Give it up troll, there isn’t going to be any recall.
Screw the iPodNano. Ten million units my @$$, that should be the ROKR. Who the hell wants to listen to 1000 songs? What people want is a device that does everything and flush the toilet. What the hell does the nano do? Can you call your friends and loved ones with a nano? Can you pay for over priced cheesy ring tones? HELL NO! ROKR ROCKS! nano sucks. SO THERE!!!!!
What alternate universe is he stuck in?
thnk how many US$3 ringtones the RKR holds…
Oh, and gee, maybe I need a hand reading the stock ticker….
that’s my name too.
The point of an analyst is to value a stock based on future outlook.
If the guy seriously thinks the stock was worth $40/share despite a current $54 price, then that’s what he’s supposed to write. Based on his “new” data, $55 is what the stock is worth.
There are obviously people who think the price should be lower than or where it is today. Those are the people selling apple stock. Remember for every share bought, someone has to sell. That seller usually thinks Apple has reached it’s peak – wrong as they may be.
I think read in a different article that Apple has a 50% gross margin on the iPod nano.
So, unless my math fails me, even assuming that all 10 million of the expected sales came from only the $199 2GB version of the nano that would mean that Apple would have $1 billion in gross margins from this product alone in the next four months.
That would be incredible.
Granted, after marketing, distribution and other costs, they probably only net about $400 million out of that $1 billion, but still, I can see why analysts are falling over each other recommending this stock.
<< I think read in a different article that Apple has a 50% gross margin on the iPod nano.
So, unless my math fails me, even assuming that all 10 million of the expected sales came from only the $199 2GB version of the nano that would mean that Apple would have $1 billion in gross margins from this product alone in the next four months. >>
The 50% estimate was for the 2 Gig nano, which uses Toshiba memory. The 4 Gig has an estimated 40% gross margin. Both estimates are net of certain costs that Apple includes in COGS.
Distribution gets a discount of 20%, so the average sale price for all iPods will be about $192.
I’m forecasting 14,000,000 iPods for Q1 FYE 2006.