“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.