Oppenheimer ups AAPL price target to $345; says Apple ‘not too big to blow it out’

“In a note to clients issued early Friday, Oppenheimer’s Yair Reiner addresses the yawning disconnect between Apple’s (AAPL) fundamentals — the underlying strength of its business — and its share price,” Philip Elmer-DeWitt reports for Fortune. “‘Apple’s stock has performed admirably this year (up 37% YTD),’ he writes, ‘but it has significantly lagged the improvement in the company’s fundamentals, which have driven FY10 consensus EPS estimates up by 75% since January.'”

P.E.D. reports, “Reiner has raised his iPhone and iPad unit sales estimates (to 12 million and 4.5 million, respectively) as well as his Apple price target (to $345 from $330) and is advising clients to buy the stock in advance of the company’s Oct. 18 earnings report. Apple, he says, is ‘not too big to blow it out.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

30 Comments

  1. MS sold the shares they got for those $150M (not $200M) many years ago. To begin with, they were non-voting shares, and they were converted in 2000 and 2001 to common stock, at the price of $8.75 per share. MS got rid of them soon thereafter, and most certainly did make a nice profit on the $150M investment. Obviously, they would have been worth 33x more (almost $5B), had they held onto them.

    Actually, Microsoft still has a few shares of AAPL, through some capital management fund (as one of many stocks in the portfolio).

  2. MS sold the shares they got for those $150M (not $200M) many years ago. To begin with, they were non-voting shares, and they were converted in 2000 and 2001 to common stock, at the price of $8.75 per share. MS got rid of them soon thereafter, and most certainly did make a nice profit on the $150M investment. Obviously, they would have been worth 33x more (almost $5B), had they held onto them.

    Actually, Microsoft still has a few shares of AAPL, through some capital management fund (as one of many stocks in the portfolio).

  3. Wrong math there; MS didn’t get them at $8.75 per share; their $150M was, at the time, about 6% of AAPL market cap. Had they held onto the shares, those 6% would be $17B today… Massive amount of cash…

  4. Wrong math there; MS didn’t get them at $8.75 per share; their $150M was, at the time, about 6% of AAPL market cap. Had they held onto the shares, those 6% would be $17B today… Massive amount of cash…

  5. @ Predrag

    You’d be amazed at how many people at MS I talk to that think they still own those shares. That say it with a strange sort of pride, too, and it’s a little heart breaking to tall them “Er, no… they sold out of Apple years ago.”

  6. @ Predrag

    You’d be amazed at how many people at MS I talk to that think they still own those shares. That say it with a strange sort of pride, too, and it’s a little heart breaking to tall them “Er, no… they sold out of Apple years ago.”

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