Analyst: Apple’s sales could double in the next 36 months

“There is a lot of love for Apple on Wall Street: of the 53 analysts with ratings on the company, 48 have a Buy and 5 have a Hold, according to Bloomberg data,” Josh Lipton blogs for Forbes. “No analyst has a Sell rating slapped on the stock.”

“The case for optimism is easy enough to understand: the Cupertino, California-based wonder, which has a market cap of $324 billion, makes sought-after products, sits on a mountain of cash and isn’t all that expensive, trading at just about 12 times expected earnings,” Lipton reports. “This morning, Joseph Beaulieu, a Morningstar senior stock analyst who covers Apple, published a research report in which he argues that Apple’s sales could very well double in the next 36 months. (In fiscal 2010, the company generated $65 billion in revenue).”

Lipton reports, “Of course, he’s also quick to point out that he hasn’t built in any expectations of new, unannounced products into his growth estimates. Given the company’s history of market-grabbing innovation, it’s worth betting that other shiny new gadgets will soon make their way into your living room. Beaulieu pegs fair value here at $475. The stock this morning is trading at $349.”

Read more in the full article here.

11 Comments

  1. The release of the white iPhone was timed perfectly, this the normal downturn in iPhone sales when people are waiting for the new model. The white iPhone will help push sales numbers up, keeping the momentum going.

    If Apple does push back the release of iPhone 5 until late Summer or Fall, the demand for it will be unprecedented. And I predict it won’t take 36 months to double their sales, I bet this time next year we’ll see another (almost) doubling of sales and profits.

    I also think the AppleTV will move out of “hobby” status this Fall with the added ability to subscribe to iTunes video content for streaming.

  2. Sloppy math. Fiscal 11 is rather close to 100 billion in the bag. With the iPhone 5 coming and back to school in the 4 th qtr I model around 110 for fy 11. But if we stay with 100 and his 55% growth rate fy 12 comes in at 155 and fiscal 13 breaks 240 billion. So what number might Apple double and when? And what happens with new products?

    Apple is cheaper on a P/E basis than any stock of its caliber and he predicts that doubling sales and presumably profits will add less than 50% to market value. Apple is generating so much cash that within his 3 years, short of spending it on a magor accusation, Apple will have 150-200 billion. Subtract that and Apple would be a 55% growth company trading in the mid single digit P/E’s.

    1. A “magor accusation”? Apple’s products may be great but way too often MDN commenters seem to be typing on iPhones and thinking they don’t need to read through carefully and edit before posting, every time. I drunk-text my girlfriend more carefully! This kind of sloppiness makes me wish fewer people used iPhones, and I don’t like thinking that. Fortunately it doesn’t have to be that way. Slow down just a hair, and edit before clicking “publish”! Sent from my iPhone- carefully.

      1. Sure, its always good to be accurate, although I could easily understand thevwords that the poster intended tonuse.

        Given the sober thoughts that you expressed, why would you ever get drunk?

  3. What? Apple may double in ONE year (maybe 2 on the outside) easily! The biggest problem Apple has at this point is getting products manufactured fast enough. Remember Tim Cook saying: “We would have sold more if we could have made more.”

    This will become much easier as the other PC box, tablet and smart phone manufactures continue to tank their sales opening up assembly and manufacturing lines to Apple.

  4. Doubling revenue is all well and good, but will it move the share price even 30%. There needs to be some solid connection between revenue and share price. If Wall Street just shrinks the P/E multiple, that won’t do shareholders much good. I firmly believe Apple can double revenue especially if China becomes a big part of it. From the amount of usage I’m seeing of the iPad I’d think that 45 million this year could be a low number. I see a lot of usage of them on the subway where I am for travelers coming to and going from J.F. Kennedy Airport in NYC.

    Wall Street and investors are going to have to get serious about Apple and stop thinking it’s just a big toy company.

  5. To Fredo, who made you god of the Internet? If you really have such a problem with spelling maybe you should stick to reading books. Oh, there, intentional, full of editing error too. My interest in reading and posting is the spread of well reasoned and thoughtful ideas. Spelling matters but not so much.

    1. Marty Wells – Sew write! Eye no knot won buoy, threw awl thyme, kneading two spell rite too communicate clearly!

      Butt ewe mite wont 2 reed sum passed rye tings.
      Sea bee lough ;

      “Take care that you never spell a word wrong. Always before you write a word, consider how it is spelled, and, if you do not remember, turn to a dictionary. It produces great praise to a lady to spell well.” – Thomas Jefferson

      (Jefferson – pffft. Chump. Wut did HE ever do?!!)

Add Your Feedback

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