Oppenheimer initiates coverage of Apple with ‘Outperform’ rating, $235 target

Oppenheimer analyst Yair Reiner has initiated coverage of Apple (AAPL) with an “Outperform” rating and $235 price target.

In a research note to clients, Reiner wrote, “We believe Apple is ideally positioned to drive and benefit from the ongoing transformation of the home PC form efficiency tool to media center, and of the wireless handset from mobile phone to media-centric pocket computer.”

Eric Savitz reports for Barron’s, “Reiner thinks demand for the 3G iPhone will be ‘much stronger’ than the Street is modeling, and that its success will draw ‘significant numbers of new adherents to Apple’s Mac offerings.’ He thinks Apple can boost its share of the worldwide PC market to 5.3% by 2012, from 3% recently. He sees Apple selling 14.5 million iPhones in calendar 2008, well above the company’s 10 million unit target, and 28 million units in 2009.”

“Reiner expects Apple to earn $5.30 a share in the September 2008 fiscal year, and $6.82 in FY 2009, which is well ahead of the Street at $5.21 and $6.32,” Savitz reports.

Full article here.

13 Comments

  1. Oppenheimer needs to calm down here!!! Or perhaps is he on crack???

    Apple still has to achieve a lot before $235 is a reality.

    This company has yet to get achieve the same succes internationaly as in the States.

  2. I don’t know why analysts always talk about Apple’s 3% worldwide market share and not their 7-9% U.S. market share. The worldwide market will continue to lag significantly due to the small cost premium for most Macs. Most people in other countries are just buying the cheapest PC they can find. I’m sure Apple is more concerned about their U.S. market share than their worldwide market share.

  3. “I don’t know why analysts always talk about Apple’s 3% worldwide market share”

    Because that’s what matter my friend. We’re living in a global economy. And Apple is doing a poor job globally. Lot’s of people would enjoy their product overseas if there were more Apple stores out there, and if the products were priced competitively, which in no way is the case today.

    In a lot of country, people ain’t aware there is such a thing as an iMac. when you know that in those same countries people are buying iPods and waiting for the iPhone, you conclude there’s something wrong somewhere. Maybe Jobs hasn’t yet pushed on the world dominance button…

  4. Cubert : “I’m sure Apple is more concerned about their U.S. market share than their worldwide market share.”

    As a shareholder, I would be very concerned if that would be the case. Focussing on the weakest currency does not make much sense. Yet, I have to admit, they did so with the Iphone.

  5. Make no mistake, Mac market share is going to go up significantly worldwide, and each point, or even basis point, is worth a lot to Apple.

    BTW Mac+, APPL could hit that 235 target any week from here on in. Perception is changing, more and more people are coming to understand just what is happening here…

  6. with ca. $7 earnings a share in 2009 an then probably 25 billion cash on the bank (apple adds roughly 1.5 – 2 bn a quarter at the moment to their existing 19.4 bn) that would make a PE ex cash of 28. i would say we’ll see that till december.

  7. “people are coming to understand just what is happening here”

    And what is really happening? Everyone has it own understading of it. But will Apple numbers correspond to your understanding? That’s the thing. It’s all depend on the worldwide reception of 3G iPhone and Apple’s next generation of computers. I heard Apple is on the verge of raising the bar of innovation even higher… let’s wait and see.

  8. Given the weakness of the US dollar, an overseas sale potentially counts for more than a domestic one. But in some countries, distribution through third parties results in artificially high prices that discourage sales. In Israel, for example, a Macbook can run over $2,000, far higher than the HP or Dell counterparts. (I won’t say “equivalent”.)

  9. @Bobdebouwer,
    True. I don’t remember their numbers but I believe that they sell more Macs in the U.S. than the rest of the world combined. I think their strategy is to conquer the U.S. markets before the major push into foreign markets (via the Apple Stores, of course).

  10. Actually, I see Apple shares dropping after the June conf.

    Why? Apple will introduce most of what we expect to see.
    Iphone 3g
    iPhone store
    Some apps will be ready that day,
    And good numbers in vendors, sales etc.
    But mostly I expect to see software. Hey its a developers conf. Remember???

    Apple will not introduce anti-gravity, 6 day batteries, or any other anti-apple rappers bs. So the stock will take a big dip,…. er huge buying oppertunity. Down to say maybe even 165, then it will begin its long and even climb back to over 200 by xmas.

    So save up and be ready for the last buyers op before xmas.

    nuff said.

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