Lehman Brothers boosts Apple price target by $30 to $190, anticipates strong fiscal quarter

“Shares of Apple Inc. rose in premarket trading Monday, after a Lehman Brothers analyst raised his price target in anticipation of strong fiscal fourth-quarter results,” The Associated Press reports.

“Lehman’s Harry E. Blount said he expected Apple’s stock to benefit from strong quarterly results next week, in addition to the release of the Leopard operating system and updated product lines,” AP reports.

“Blount raised his price target by $30 to $190, implying upside of nearly 14 percent to Friday’s $167.25 closing price, and raised his profit and sales estimates for Apple’s fiscal fourth quarter,” AP reports.

“The upcoming release of Leopard should boost sales in Apple’s December quarter and give Apple more market share in desktops, Blount said,” AP reports.

“Apple reports quarterly results on Oct. 22. Analysts polled by Thomson Financial expect earnings of 84 cents and sales of $6.05 billion,” AP reports.

Full article here.

[Thanks to MacDailyNews Reader “Mike in Helsinki” for the heads up.]

6 Comments

  1. “The upcoming release of Leopard should boost sales in Apple’s December quarter and give Apple more market share in desktops, Blount said,” AP reports.

    That will be insignificant compared to sales of iPhone, iTouch and MPB’s, might as well mention MB’s.

  2. There are 2 possible news at earnings announcement:
    1. Good news
    2. Bad news
    In both cases the stock will go down for several days.
    Case 2 is simple: anything less than stellar earnings and good forecast will cause panic amongst those how purchased the stock above $150. BTW, everybody knows the forecast will be conservative so they don’t care much about it and just multiply Apple’s numbers by 1.1 to 1.2.
    Case 1 is less obvious, but: because the stock was on incredible rise recently very good earnings are already calculated into the current stock price so the short term investors will just cash in after the announcement. Historical data supports this hypothesis. Smarter investors will cash in before earnings announcements.

  3. If they announce superb earnings—and assuming you’re willing to hold through earnings—there’s a good chance the stock will gap up, then come down, so one idea might be to sell at the opening the day after. Or, see what the opening price is, then put a sell stop a few points below the opening price, just in case it doesn’t come down too hard.

    If you buy and hold, then, well, just hold it.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.