Credit Suisse initiates Apple coverage with $500 price target

“Posing the question of whether Apple is the ‘most valuable company in the world,’ Credit Suisse on Thursday initiated coverage of the iPad maker with a $500 price target, saying it believes Apple is well positioned to command a majority share of a booming tablet market expect to grow to $120 billion over the next four years,” Sam Oliver reports for AppleInsider.

“In his inaugural note to clients, analyst Kulbinder Garcha concluded that Apple should be able to deliver extensive revenue and earnings growth of 50% and 46%, respectively, over the next two years, given that all indicators suggest the company will easily sustain its competitive advantage through its integrated ecosystem of software, hardware and services,” Oliver reports. “‘[T]hree years after the launch of its first iPhone, we believe few handset vendors come close to the quality of Apple’s hardware, software, and services,’ he wrote. ‘We also expect the company’s services offering to evolve along with its device portfolio.'”

Oliver reports, “To that end, the analyst noted that the success of the iPad only reinforces the notion of increased user loyalty, which could translate to more stable market share in Apple’s handset business. As it stands, Garcha’s proprietary analysis for tablets indicates that the segment could rise to $120 billion market by 2015, and he expects Apple will maintain a share as high as 50% by that time, given its aggressive pricing, time to market advantage and a software edge.”

Read more in the full article here.

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

5 Comments

  1. Maybe I’m missing something, but aren’t they a little late to the party? The real money to be made on Apple was back when a pre-split share (2 today) could be had for less than $10? How about back when it was less than $100 not so long ago?
    The whole idea of these highly paid people is to advise looking forward- not looking at the NBA Champs and then telling you they are a great team.

    1. Yes. Most are late to the party. However, to believe that the party is almost over is short sighted. Does anyone really believe that Apple will not take any more markets? (Car entertainment, TV, home security, video conferencing, cloud cable boxes, …) To believe that Apple has stopped developing new innovative products and services would be to believe that Microsoft is purchasing Apple Inc. Apple is not done!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.