Zacks upgrades Apple shares to ‘outperform’

“We are upgrading Apple Inc. (AAPL) to Outperform from Neutral, as we believe Apple has further room for expansion. Apple has experienced tremendous growth, driven by the success of its iPhones and increased Mac shipments,” Zacks Equity Research reports.

“We expect the iPhone-driven momentum to continue, as the company’s product generates the highest customer satisfaction in the industry. In our opinion, this is the key to long-term growth and continued appreciation of the stock, given the large addressable market,” Zacks reports.

“We believe the company will continue to post solid results due to the resurgence of its Mac portable systems, including MacBook Air, Mac Pro and the new Snow Leopard. The company revamped its line of iMac desktops and MacBook laptop computers, as well as increased sales of iPods, including the new iPod Shuffle, iPhone 3G, iPhone OS 3.0 (beta release), iTunes Movie Rentals and the successful launch of the iPhone 3GS,” Zacks reports.

“Apple has a strong balance sheet with zero debt and $34.0 billion cash, short-term investments and long-term mark etable securities as of September 2009 versus $31.1 billion as of June 2009,” Zacks reports. “Year to date, Apple’s share price has more than doubled. Apple’s valuation premium is justified, given the company’s various positive attributes and track record in earnings growth, and leaves room for further upside from the current levels.”

Full article here.


  1. @ breeze

    You’ll notice that the fanboys around here don’t know crap about the stock market, finance, marketing, whatever. They all think they’re smarter than analysts, which they aren’t, and fail to realize what the real purpose is of sell-side analysts in brokerages. They’re there to allow brokers to trade stocks (and therefore, make money).

    $34 billion in cash is just impressive in this economy. Eventually shareholders will want that cash paid out or used in an acquisition, since it’s return is going to underperform the market in the next year or so.

  2. @LeftCoastDude

    Nice to see you got redirected here from the AAPL Google Finance comments page, Matt. So you figure if you post your astroturf here (now that trolls like you have killed the Google Finance comments section) the checks from Microsoft will keep flowing. Nice try.

    You and Ralph from Berlin, if you are indeed separate people, are completely clueless about investing in AAPL. Apple has historically supported an EPS multiple of 40. Let’s honor the present economic climate and lower that to 30 (It’s presently 35). $12 per share gives us a 2011 price target of $360. I’d close a bunch of those shorts if I were you.

  3. @LeftCoastDude: “…all think they’re smarter than analysts, which they aren’t…”

    As a matter of fact, we are, and we’ve proven it over several years of earnings reports. Deagol over at TMO’s Finance Board has been more accurate EVERY TIME than 95% of the pro analysts. Take your trash elsewhere.

  4. to make things a bit clearer (also for the ignorant idiots trolling here) i was referring to free cash flow instead of eps and questioned the analyst’s “premium valuation”. most analysts have not yet adjusted their eps projections to the impending changes to apple’s booking of iphone revenue and earnings (closing the gap between the gaap and non-gaap reporting in FY 2010). thus eps will be around $10-12 in 2010, free cashflow ($3,20 a share last quarter alone) will be even higher. given a long time average valuation of multiples of 25-30 we are talking about a range of 300-360 within the next 12 months.

  5. @ralph from berlin

    One of the few who knows what the hell he is talking about. Apple’s off-the-shelf P/E, which all the stupid fscking sheep focus on without getting off their lard ass and reading anything, is about 14 if you use real numbers (non-GAAP, money already collected by not recognized, but you wont care cause you too fscking stupid).

    If you base your investment decisons on P/E, it is a statement about how big of a dumbass you are.

  6. Yeah, this dumbass missed the earnings by so much, and is so clueless, and doesn’t know what he’s talking about. That’s why my Apple investments have made me 3500% profits in the last 5 years.

    But you know better…yeah, right. What a clown. I recognize the condescending know-nothing style from Google Finance. They closed down the comments section over there a few days ago because of all the FUD and worthless tripe spewed by the short sellers and wanna-be’s over there. Now they just have links to articles like this one. That’s no doubt how you found your way here. Is this Matt Delmos, or one of the other posers from over there? Dear old Matt was screaming “Sell, Sell, Sell!!!” during all of 2009 while AAPL was doubling in price. He did the same thing when AAPL was at $80, and when it was at $60.

    Yep, you tell us about it, Mr. Know-it-all.

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