Gabelli initiates Apple coverage with ‘Buy’; $450 price target

Apple Online Store“Shares of Apple (AAPL) are up 77 cents at $322.02 after Gabelli & Co. analyst Hendi Susanto initiated coverage of the stock with a Buy recommendation and a price target of $450,” Tiernan Ray reports for Barron’s. “Susanto sees multiple factors boosting revenue this fiscal year ending in September to $98 billion, which is about $10 billion more than the Street has been looking for.”

Ray reports, “The analysis is a lot about content and about the Apple “ecosystem,” not the devices, per se. Susanto sees Apple having 290 million users of its media consuming devices — meaning iPad, iPhone, and iPod — by this September. That number of users may more than double by 2014 to 680 million… By September of 2012, Apple should have $97 billion in cash… [therefore] Apple is going to encounter increasing pressure on using its cash for share buyback or dividend.”

Full article here.

6 Comments

  1. Scary how lately analyst have increased their estimates on AAPL.
    $98 Billion CAsh by 2012? A bit high iSay.

    More like $75 Billion is more like it!!!!!! And
    2011 = $422/share and Still Zero debts ” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> BUY!
    Split of AAPL is more likely next year.

  2. Apple added about 20 billion to cash this year. Including 5.4 Billion last quarter. I think they can easily add 25 Billion next year and 30 billion in 2012. That would top $100 Billion by the end of 2012. That’s a lot of cash. They could easily split the stock 5 for 1 and or buy back 25 billion in stock with that much cash.

  3. I’m still surprised that on these past few day’s upgrades that the stock has barely moved at all. I don’t particularly see that as a good sign. Either investors aren’t interested or the hedge funds are holding the stock from moving. Wouldn’t a stock just naturally move up due to multiple upgrades or am I wrong about that? Not huge movement, but in the 1% range, at least. I sure wouldn’t expect to see it in the red.

  4. apple has had a good run since sept. some think the stock is consolidating and forming a base at 320. I thought the base would be 325 but here we are stuck in a range at 320. Others, myself included feel the stock has been heavily manipulated by large MM’s since weekly options on Appe started trading. It is easy for these funds that hold millions of shares to put downward pressure on the stock and keep it in a range that’s beneficial to their options investments. We should see a big gain in 2011 though, probably 80-100 points. NAZ breaking 2500 was a good omen and apple should follow.

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