Bear Stearns raises estimates, price target on Apple based on strong MacBook, iPod sales

“Bear Stearns analysts Andy Neff, Bill Hand and Ted Chung sent a note to clients today regarding Apple’s holiday sales,” none other than Andy Neff himself writes for Seekign Alpha.

Neff writes, “Based on favorable feedback from retail channel checks (strength in notebooks, higher iPod sales), feedback from Asia checks (which indicate sequential uptick in Mac units vs. [Apple’s] guidance for sequential decline) and strong acceptance of [Apple’s new Mac OS X Leopard], we’re raising our rev/EPS estimates and CY08 target from $243 to $249.”

“Despite AAPL’s uncharacteristically strong Dec-qtr guidance, we still expect strong upside and are raising 1Q08 EPS from $1.65 to $1.75 (guidance is $1.42; Street at $1.54) on revs of $9.67bn (guidance is $9.2bn; Street at $9.33bn) based on Mac units of 2.2mm (up 1% seq vs. prior est. of flat seq) and iPod units of 25.0mm (up 145% seq and above our prior est. of 24.3mm),” Neff writes. “Given product cycles for Mac/iPod and Leopard OS uptake, we’re raising EPS for FY08 from $5.25 to $5.40 and for FY09 from $6.90 to $7.00.”

“We’re raising our CY08 target from $243 to $249 (price of an 80GB iPod classic),” Neff writes.

Full article here.

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

The season of fake Apple discontent is over. Time to make some money!

11 Comments

  1. Wow, they mix Calendary Years with Fiscal Years, one can easily get confused! Still, if you divide their price target of $249 by their eps projections, then you get a multiple of 46!!! A bit on the high side. And, if you apply the CY08 price target of $249, to the FY09 eps of $7, you get 35x, which is still high, but in the ballpark for Apple, based upon its high growth.

    Cause if you applied their 46x multiple to FY09’s $7 eps, then you get an astounding price target for 2009 of $322!!!

  2. Okay, I looked at the article in the link, and they apply a $7.30 eps times a 31 multiple, and then add $22 per share in cash, for a total of $249. The 31x multiple is much more in line with current estimates. I keep forgetting that Apple has a ton of cash on hand.

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