“Another day, another Apple price target increase,” Tiernan Ray reports for Barron’s.
“The stock is up 2 cents at $128.48 after Goldman Sachs’s Bill Shope writes that he has greater confidence since his last ‘scenario analysis’ of the company, back in December, and raised his price target to $145 from $130, while reiterating a Buy rating,” Ray reports. “Specifically, ‘Tim Cook’s presentation at the Goldman Sachs Technology and Internet Conference has increased our confidence in Apple’s platform momentum (particularly on Apple Pay), the potential for the Apple Watch, and the prospects for sustained iPhone growth,’ writes Shope.”
“Stepping through various factors at play for Apple, Shope writes that his original belief that there was little risk of ‘sharper than normal’ drop in iPhone sales in the March quarter, after the big December quarter, is not only still intact, but Apple’s forecast for the quarter ‘appears to be remarkably conservative,'” Ray reports. “Shope’s ‘base case’ for Apple for calendar 2015 is for $231 billion in revenue, a gross profit margin of 39.5%, free cash flow of $63 billion, and EPS of $9.03. That assumes sales of b, 13.5 million Apple Watchs, 21 million Macs and 63.4 million iPads.”
Read more in the full article here.
“… his original belief that there was little risk of ‘sharper than normal’ drop in iPhone sales in the March quarter …”
I think that sales in the March quarter might be rather impressive from now on. Apple sells huge quantities of iPhones in China and yesterday was the Chinese New Year. Apple will be benefitting from two lucrative holiday seasons in two consecutive quarters.
Um, let’s see now . . . If AAPL has already hit our year’s target and it is only February, we should up the target again. We can do this every two months now for our ‘yearly’ stock target.
…and, at the end of the year, point out how well AAPL tracked their targets and how close their final target was to the year-end price.
People actually get paid to produce this information…
Wow stick your neck out why don’t you ……
How about this:
Price Target = $155
Date Apple Hits Target = May 12, 2015
Earnings Share = $2.55 for Current Quarter with $12.52 for Current Year
Year from this date expect Apple to be close to $200 share!
Normally Apple’s largest quarter is their first quarter or the one we just went thru but this year will be different ……
Look for a HUGE Q3 Quarter and Q4 sending the stock thru the roof!