Hudson Square ups Apple price target to $500

This morning, Hudson Square Research analyst Daniel Ernst “raised his price target for Apple (AAPL) to $500, from $300, while repeating his Buy rating,” Eric Savitz reports for Barron’s. “That’s the highest target for the stock among Street analysts tracked by Thomson First Call.”

Savitz reports, “‘With the launch of the iPhone, the App Store, the iPad, and the relaunch of Apple TV, we estimate Apple’s total addressable market for hardware, content, and services expanded from roughly $400 billion to $1.5 trillion,’ he writes in a research note this morning. ‘Apple’s Mac share has doubled over the last five years and we believe could double again. In a little over 3 years Apple has captured less than 3% of the mobile phone market by units, but by revenue Apple holds a ~14% share. The iPad is off to a strong start, and the product greatly expands Apple’s addressable market for content distribution. While the new Apple TV and iAd are still in the very early stages, we believe the opportunity is very strong.'”

Read more in the full article here.

MacDailyNews Take: Don’t forget the new iPod, especially the iPod touch. Poor iPod touch; people always forget about you, even as you sell in the millions per quarter, but we always remember and love ya!

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

38 Comments

  1. Just got my AppleTV. It’s pretty slick. Beaming video from an iTunes Home server works very well. The integration with the iPhone remote app is also very intuitive.

    For $99 this could be a very powerful trojan horse and kick start Apples video store. This could be the 5th cylinder on Apple’s machine. We have Macs, iPhone, iPod, iPad and now the AppleTV. Even the iPod is doing okay after 8 years. The numbers are holding but the mix is going toward the touch systems.

  2. How high do you want to go?…

    -“6”
    -“8”
    -“No – 10”
    -Aw, come on guys – ten steaks each?”
    -“Do we look like comedians?”
    -“What do you call a man who sticks his ding-a-ling in a melon?”
    -“Christopher”
    -“See”

    Comic Strip Presents…
    A Fistful of Travellers Cheques.
    LOL!

  3. How high do you want to go?…

    -“6”
    -“8”
    -“No – 10”
    -Aw, come on guys – ten steaks each?”
    -“Do we look like comedians?”
    -“What do you call a man who sticks his ding-a-ling in a melon?”
    -“Christopher”
    -“See”

    Comic Strip Presents…
    A Fistful of Travellers Cheques.
    LOL!

  4. “Are there any valid reasons why Apple’s stock shouldn’t be as valuable as Google’s?”

    Not many, considering AAPL is worth some $93,000,000,000 more than Google – at the time of writing.

  5. “Are there any valid reasons why Apple’s stock shouldn’t be as valuable as Google’s?”

    Not many, considering AAPL is worth some $93,000,000,000 more than Google – at the time of writing.

  6. Puh-leeze, this analysts are just throwing out any old number without even understanding what those numbers mean. It’s highly unlikely that Apple will go to $500 per share.

    Here, I can act like an analyst too:

    AAPL is going to $600!
    AAPL is going to $700!
    AAPL is going to $1,000,000!

    See? I’m an analyst too.

  7. Puh-leeze, this analysts are just throwing out any old number without even understanding what those numbers mean. It’s highly unlikely that Apple will go to $500 per share.

    Here, I can act like an analyst too:

    AAPL is going to $600!
    AAPL is going to $700!
    AAPL is going to $1,000,000!

    See? I’m an analyst too.

  8. “In a little over 3 years Apple has captured less than 3% of the mobile phone market by units, but by revenue Apple holds a ~14% share.”

    One little thing he forgot to mention: 40% share of industry profits.

  9. “In a little over 3 years Apple has captured less than 3% of the mobile phone market by units, but by revenue Apple holds a ~14% share.”

    One little thing he forgot to mention: 40% share of industry profits.

  10. “Are there any valid reasons why Apple’s stock shouldn’t be as valuable as Google’s?”

    Once again we have to explain that stock price has no relation to value. It is stock price X number of shares outstanding that = market value of the company. If Apple splits the stock (multiplies the shares outstanding) the stock price drops but the total value is still the same.

    Google’s stock price is higher than Apple’s even though the company has a lower value because they have fewer shares issued.

  11. “Are there any valid reasons why Apple’s stock shouldn’t be as valuable as Google’s?”

    Once again we have to explain that stock price has no relation to value. It is stock price X number of shares outstanding that = market value of the company. If Apple splits the stock (multiplies the shares outstanding) the stock price drops but the total value is still the same.

    Google’s stock price is higher than Apple’s even though the company has a lower value because they have fewer shares issued.

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