Needham ups Apple estimates on stronger-than-expected Mac and iPad sales

“Needham analyst Charlie Wolf this morning repeated his Buy rating and $450 price target for Apple, while raising his earnings estimates based on indications of stronger-than-expected Mac and iPad sales,” Eric Savitz blogs for Forbes.

“Wolf writes in a research note that he has raised his forecast for FY Q3 iPad shipments to 9 million unit from 7.5 million on ‘the strength of unprecdented worldwide demand,'” Savitz reports. “Rivals, he says, have ‘fallen woefully short in matching its features, ease-of-use and the number of applications written for the device. Indeed, the only risk in our forecast is on the supply, not the demand side.'”

Savitz reports, “Wolf also raises his forecast for Q3 Mac shipments to 4.25 million from 3.75 million, which would be up 22.4% sequentially.”

Full article with Needham’s new FY 2011 and FY 2012 estimates here.


    1. Why would that happen? If the manipulators have found a good thing that’s perfectly legal and fairly consistent, why would they stop doing it. Apple stock has become useless for long-term investors if the day traders control it. The hedge funds are using Apple as a weekly bank to finance all the other stocks to make big money for them. That’s how they can keep stocks like Amazon and Netflix on the rise while Apple stock stagnates.

      1. Because at some point, the disconnect between the price and its earnings is too great, and then the price will correct. If you look at the data, the stock only finished 39 out of 52 weeks in the MaxPain zone. 25% of the time it hasn’t. Presumably, due to earnings news or product launches or something that disrupts the usual boring trading.

  1. “Wolf writes in a research note that he has raised his forecast for FY Q3 iPad shipments to 9 million unit from 7.5 million on ‘the strength of unprecdented worldwide demand,’”

    Maybe he should have visited MDN. We fully expected it and loudly announced it. Of course, this, and others of that mold, guy has been soundly insolated from reality by their group brilliance and Microsofts blinder / earmuffs.

    1. Could it be that what is keeping Apple’s stock price artificially low is cognitive dissonance in dunderheads who cannot comprehend that Microsoft really does suck and Apple is indeed one of the few companies thriving in the ongoing economic depression? How about this for a syndrome name?

      Inner World Distortion imposed upon Outer World Reality.

      Whatever is going on, today’s business world continues to be remarkably self-destructive and incoherent. Hello in there! Wake up!

      Maybe we need to have a National MBA Burning Day. A revolution to mark the end of bad old biznizz methods, heralding in a return to sane business ethics and methods. It could happen.

  2. This is a perfect example of the “logic” used by WS to forecast AAPL/Apple. Needham’s “new” $25 fiscal 2011 EPS estimate was made by taking the average of fiscal Q1 and Q2 earnings and using that amount for fiscal Q3 and Q4 earnings. In other words, Needham is forecasting FLAT earnings for the remainder of the fiscal year.

    1. Maybe he did his math on Window platform …..

      Gotta figure if we are already close to $13 and have quarter that just ended, which we know sold more than previous quarter …. and …..

      And ….. Apple has new products coming in July and back to school quarter (new MacAir) …. and ….

      And …. iPad is still selling as fast as they can make them and iPhone is doing well and the ….. and ….

      And …. Desktops are flying off the shelves – I saw 3 leave a store in 15 minutes and every other visit most I saw in any 15 minute period was two – but a very small sampling I understand – but – in talking with the sales folks all said new iMac way more popular than previous model ….

      And …. Monies being made on the accessories and did I mention the APP Store and iTunes …. Yea not much money but they in themselves are a viable business ….

      My target is closer to $28 and I think that maybe even soft – If a new iPhone comes all bets are off and we will go over $35 next year with $9 – $10 quarters coming soon ….

      Watching Apple and people finally getting feed up with Windows and the numbers that are switching is amazing ….

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