Piper Jaffray ups Apple price target to $429 from $390

Apple Online StoreIn a note to clients yesterday after Apple release their earnings report, Piper Jaffray analyst Gene Munster wrote, “‘While shares of Apple may pull back today (10/19), we would be buyers based on our belief that investors will gain optimism over the next three months that the growth story will continue. We are raising our FY11 revenue growth rate from 24% to 32% and our price target goes from $390 to $429. Key takeaways from the Sept. quarter include: adjusting for iPhone backlog in Sept. (we believe iPhone growth rate went from 61% in June to 114% in Sept).; Apple reported 4.1m iPads sold but we believe the true demand was closer to 4.5m; Street was disappointed with margins but we believe higher volumes are a net positive for the business.'” Roger Nachman reports for Benzinga.

Full article here.

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

28 Comments

  1. I have yet to hear any analyst mention the fact that the ipad is a version 1 product. Did anyone else notice this curious factual omission?
    We can all find things we’d like improved on the ipad, but it’s much harder on the iPhone, a much more mature version 4 product, and that’s why lots of us haven’t bought an ipad.

  2. I have yet to hear any analyst mention the fact that the ipad is a version 1 product. Did anyone else notice this curious factual omission?
    We can all find things we’d like improved on the ipad, but it’s much harder on the iPhone, a much more mature version 4 product, and that’s why lots of us haven’t bought an ipad.

  3. More revenue than IBM.
    More revenue than Microsoft.
    More phones than Nokia.
    More music players than anyone.
    More computers than HP.
    More computers than Dell.
    More online revenue than any competitor.
    More products in the pipeline.

    Boom !!!

  4. More revenue than IBM.
    More revenue than Microsoft.
    More phones than Nokia.
    More music players than anyone.
    More computers than HP.
    More computers than Dell.
    More online revenue than any competitor.
    More products in the pipeline.

    Boom !!!

  5. They missed a lot Oliver. The iPad will also get the iSight camera for the existing hole in the frame. FaceTime will be in iChat and there may be a Windows version of iChat / FaceTime too. The BILLION DOLLAR SERVER FARM was not asked about even though Apple said last time it was on schedule to go on line this quarter. Maybe Apple will talk about it during the OS X event tomorrow. So many questions were not asked. So much is not understood by the talking heads.

  6. They missed a lot Oliver. The iPad will also get the iSight camera for the existing hole in the frame. FaceTime will be in iChat and there may be a Windows version of iChat / FaceTime too. The BILLION DOLLAR SERVER FARM was not asked about even though Apple said last time it was on schedule to go on line this quarter. Maybe Apple will talk about it during the OS X event tomorrow. So many questions were not asked. So much is not understood by the talking heads.

  7. A market category that never existed before – iPad…

    Apple can’t make enough to satisfy demand and sells every last one in stock (4+million units!) where exactly does the word disappointment fit here?

  8. A market category that never existed before – iPad…

    Apple can’t make enough to satisfy demand and sells every last one in stock (4+million units!) where exactly does the word disappointment fit here?

  9. J_T good points. I hadn’t even thought of the server farm.
    The point about the ipad is that it was a product put initially out to test the market. They had no idea what the demand would be so they made it using let’s say average spec components. Components which were already very available and could be purchased in quantity if needed.
    When they release a version 2 with custom high spec components (eg a 1280×960 / 1600×1200 display etc) then the product will find it’s true potential as a ‘must have’ and will sell accordingly. At present, in the hand, it reminds me of a childs dinner plate. I’d love a larger screen than my ipod as I use my iPod to access the net but the ipad just isn’t it…yet… for me. So I’m not at all upset that the market had similar thoughts.

    ps. I also thought the aTV figure was a bit suspect. I thought it might be a hit over christmass due to it’s price, but at 250,000 a month I don’t know.

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