Merrill Lynch ups Apple price target from $300 to $325

invisibleSHIELD case for iPad“Bank of America/Merrill Lynch’s Scott Craig issued a bullish note to clients Friday in which he raised his estimates for Apple’s (AAPL) third quarter revenue and earnings and upped his share price target — from $300 to $325,” Philip Elmer-DeWitt reports for Fortune.

“‘We believe multiple tailwinds exist for iPhone demand,’ he wrote, ‘including strong uptake at AT&T (continued) and international growth (expansion to multi- carrier and with existing carriers)… We raise our iPad estimates on better than expected demand (with lengthy lead times) and based on channel checks in Asia. Also, we believe consensus estimates meaningfully underestimate Apple’s gross margin potential (not overly unusual),'” Elmer-DeWitt reports.

“Craig is the fourth major analyst this month to raise Apple’s price target in advance of the company’s third fiscal quarter, which ends June 26,” Elmer-DeWitt reports. “The others were Morgan Stanley’s Katy Huberty (to $310), Standard & Poor’s Clyde Montevirgen ($300) and Sterne Agee’s Vijay Rakesh ($300).”

Full article, with a list of analysts’ current ratings for Apple, here.

[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]

13 Comments

  1. The overall market is a bit precarious at the moment. However, today is a good example of “flight to quality” for AAPL, with the overall market being down about 1% and AAPL being up 1.39%. MSFT was down with the overall market, BTW. With all the hype from the “Apple is now bigger than Microsoft” stories, I think more typical investors are seeing Apple as a “safe bet” now rather than “high but risky growth.”

    If the overall market tanks suddenly, AAPL will go along for the ride down and probably go down a greater percentage. If the overall market is stagnant, AAPL will do OK. If the overall market improves, AAPL will do well and go up a greater percentage.

    All of you who are overly enthusiastic need to calm down. AAPL was going for new highs at $200 when the financial crisis hit and it dropped to under $80 over the course of 2008. The current situation in Europe is not any better. Thankfully, there aren’t any Steve Jobs health rumors to make it a “perfect storm” this time.

  2. Can you just imagine where this is going to go when (not if) the majority of the world finally f*cking gets it? This is going to make the hula-hoop … aw, never mind.

    Nuff said, it’s Friday.

  3. And what will it be when Steve Jobs shows of the new AppleTV with Apple’s Billion Dollar Server Farm during his “Just one more thing”? At $99.00 and I assume a service fee or add on to the .mac / .me accounts for a DVR in the clouds that your iPad, iPhone, iPod, your HDTV and computer can watch on demand? Will it be $350 or $400?

    What about the next $99 OS X based device. Apple can push out devices for new categories faster than Congress can tax and cry about them!

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