Goldman Sachs analyst David Bailey yesterday raised his target price on Apple (AAPL) from $175 to $185 based on “strong Mac sales and a better product mix should offset sluggish iPhone and iPod sales and allow the company to report March quarter results ‘strong enough to satisfy the Street,'” Eric Savitz reports for Barron’s.
“Bailey raised his March quarter EPS estimate to $1.09 from $1.02, and above the Street at $1.06, to reflect better gross margin from component cost declines and ‘a higher-end skew within each product line,'” Savitz reports. “He raised his June quarter estimate to $1.12, from $1.05, above the Street at $1.10.”
Savitz reports, “Bailey sees March quarter unit sales of 2.1 million Macs; he sees 1.4 million iPhones. He sees calendar 2008 sales of 11 million iPhones, ahead of the company’s much-publicized 10 million unit estimate.”
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