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"Attempting to analyze Apple through the general mediocrity of the industry they're part of, is just not the way to look at Apple..."

  Thursday, January 7, 2010

AAPL: Barclays Raises Target to $260

Shares of Apple (AAPL) are down 48 cents, a quarter percent, at $210.48 after Barclay’s Capital analyst Ben Reitzes this morning raised his price target on the stock to $260 from $235, writing that his “end of quarter checks” of retail and the supply chain indicate sales of Macs and iPhones are picking up. Reitzes has an “Overweight” rating on Apple.

Macs, helped by the iPhone’s “halo effect,” can outperform the next few quarters as schools commence buying, he believes, and international sales of the iPhone appear “very strong.” Margins on Macs, iPhones and iPods were likely strong in the holiday quarter, helped by favorable mix of components.

Reitzes sees a major revamp of the iPhone this year, which could expand international carriers and also bring Verizon Communications (VZ) into the iPhone camp in the next fiscal year starting in October. That should put to rest concern’s over Google’s (GOOG) Nexus One phone, he avers.

Meantime, the forthcoming tablet computer, expected to be unveiled later this month, could “quickly” add 1 million units to Mac sales, with each one million adding 15 cents to EPS, based on an estimated price of $500 to $700 for the device.

Reitzes raised GAAP EPS estimate for FY1Q ended last month to $2.04 from $1.99, which is in line with estimates. His pro-forma estimate is $3.30. For the year, he sees $7.84, in line with estimates, and $11.50. For next year, he sees $9.45 GAAP EPS, in line with estimates, and $12.60, non-GAAP, up from $11.60.

5:40:44 PM    



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