Piper Jaffray analyst Gene Munster in a note to clients this morning cut his EPS (earnings per share) estimates and price target on the company based upon “macroeconomic headwinds.”
Munster cut his revenue estimate for Apple’s FY09 from $40.45 billion to $38.86 billion and lowered his EPS estimate from $5.67 to $5.46.
For FY10, Munster pegs revenue at $50.08 billion, down from from $51.76 billion and estimates profit at $7.73, down from $7.98.
Munster notes that he expects Apple’s Macs to continue to gain market share in 2009, but due to the difficult economic conditions, lowered his 2009 Mac growth forecast from 16% to 10%.
Munster reiterated his “Buy” rating on AAPL while reducing his price target from $250 to $235.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
LONG AND STRONG BABY!!!!
The $200+ per share is a long way off but it is in the cards. It is just a question of how long it will take. I would hazard to say this time next year. If one buys at today’s prices and then the price increases 100% by this time next year I’d say that is an opportunity worth taking. After all, AAPL has shown to have found it’s bottom range after all this bad news. Nowhere to go but up.
It would be great to have these guys itemize the estimates. You would think that as the iPhone grows to 1/4 or 1/3 of their bottom line that it did not exist now or always existed.
There are many halo like factors that are not being discussed. What will happen when Apple takes cash out of the bank to buy into another market. Like buy TiVo and put Macmini DVR’s in every home.
And funny, there is a shortage of iPods. Look at Appleinsiders headlines…skew the headlines the way you want it to influence investors…most investors will only read the headlines.
Another Wall Street analyst living in fantasyland. HIs price target is currently nearly triple the stock price.
$235 a share? Whats the timframe on that predition? 2014?
The $235 price target (i.e., one year from today) is correct based on Apple itself, but whether Apple gets there will depend on news about the broader economy. If the economy too has “found it’s bottom,” Apple will more than double over the next year. If the economy gets substantially, it would be tough. That is the wild card.