TTS Zurich: ‘Strong Buy’ on Apple Computer with price target of $116

“Apple Computer’s stock (AAPL) has been trading in high volumes lately (in excess of 32’000’000 shares per day). The average target as seen by professionals and brokers for the stock is US$ 93 at a 12 month horizon. However, the target according to investors is at an even higher level of US$ 139. These targets reflect the positive sentiments shown by the investment community towards the stock according to its present level,” TTS Zurich reports.

Summary:
– Apple Computer managed its complete turnaround from a “Computer” company to an “Entertainment” company
– The iPod and iTunes combination is second to none
– Music phones enhance Apple’s business
– The iPod has a worldwide market share of 75.6%
– The Company controls the worldwide business of downloadable music with an 88% market share

TTS Zurich works up the value of Apple Computer Inc. and finds “the value of the company’s separate businesses being 92 to 96 billion US$ approximately. To this we need to add the cash at hand and subtract the measurable debt (i.e. 7 billion US$ in cash with no debt). This gives us a valuation of 99 billion US$ for the whole Apple company. As we have today 853’000’000 million shares outstanding for the company, a simple division of the value by the number of shares gives us a value of 116 US$ per share.”

Full article here.

[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]
TTS Zurich targets US$116 per share while, in our opinion, severely undervaluing the Mac side of the business.

Related articles:
Apple shares drop in premarket trading after Citigroup downgrade – October 02, 2006
Apple climbs in pre-market trading after ThinkEquity raises target price to $100 – September 25, 2006
UBS hikes Apple price target to $92, maintains ‘buy’ rating – September 07, 2006

7 Comments

  1. No Joe, Gartner raised their estimated sales volume, raised their estimated revenue, and raised their forecast stock price from 80 to 85, THEN lowered their ratings from BUY to HOLD.

    You see, black is white and white is black on Wall Street.

    …rr maybe someone at Gartner just sold APPL short.

  2. The citi rating is based purely on the fact that two rumored but unannounced products won’t be released this year. They compleatly ignore the huge growth we will see in the computer side of things.

  3. “Apple Computer managed its complete turnaround from a “Computer” company to an “Entertainment” company”

    Gee. I had no idea. I guess I had better shelve those plans for a new MacBook Pro and go look at a Toshiba.

    NOT,

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