Piper Jaffray remains bullish on Apple, reiterates ‘buy,’ $250 price target

“In a note to clients on Wednesday, Piper Jaffray analyst Gene Munster noted that Apple was able to maintain the price of its third-generation iPod shuffle players for over 500 days, more than twice as long as the previous price levels which lasted only about 200 days,” Katie Marsal reports for AppleInsider.

“The price cut (38 percent) on the 1GB model (to $49) and introduction of a 2GB model at $69 will result in the average selling price (ASP) of the shuffle line falling from $67 to $55, Munster estimated. Assuming no change in his shuffle unit estimate for the current March quarter, the analyst believes segment revenue would increase 12 percent year-over-year compared to his current estimate of 15 percent,” Marsal reports. “Apple’s iPod business should also see help from ‘cheaper, innovative iPods with Wi-Fi and multi-touch technology” in the not too distant future.”

“These assumptions and others lead the analyst to remain bullish on shares of the Cupertino-based electronics maker, which he rates a Buy with a $250 price target,” Marsal reports.

Full article here.

MacDailyNews Note: Apple’s iPod unit sales:

• Q4 03: 336,000

• Q1 04: 733,000 (holiday quarter)
• Q2 04: 807,000
• Q3 04: 860,000
• Q4 04: 2,016,000

• Q1 05: 4,580,000 (holiday quarter)
• Q2 05: 5,311,000
• Q3 05: 6,155,000
• Q4 05: 6,451,000

• Q1 06: 14,043,000 (holiday quarter)
• Q2 06: 8,526,000
• Q3 06: 8,111,000
• Q4 06: 8,729,000

• Q1 07: 21,066,000 (holiday quarter)
• Q2 07: 10,549,000
• Q3 07: 9,815,000 (iPhone: 270,000)
• Q4 07: 10,200,000 (iPhone: 1,119,000)

• Q1 08: 22,121,000 (iPhone: 2,315,000)

20 Comments

  1. So much about stock prices is not about real value but rather expectations. This is such a great buying opportunity but we are in fearful times. The market never stays down. APPL is not going to stay where it is and it isn’t going down very much before it climbs back to $200 plus – read the numbers. Serious Apple gains lie ahead.

  2. Well done Piper Jaffrey.

    About time that someone has the cajones to stand up and say something sensible.

    I wish to God I had a heap of notes to buy APPL at 123, because they’re right it will be back up there in due course.

  3. Munster is 1000% right. Even in tougher times AAPL will OUTPERFORM financially. Gaining market share, innovating into more sales and income Apple outpaces all the other competition especially in slow and downturn markets.

  4. People with AAPL stock should be prepared to hold it until around three years from today. You haven’t lost any money unless you sell it for less than you paid. Cross your fingers and take a deep breath.
    I might just buy a few more shares .

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