Saturday, March 27, 2010

It Feels Like Christmas ..Apple Price Target Getting Pushed Higher [Credit Suisse] $AAPL

It Feels Like Christmas

Overview
As we approach the end of Apple’s March quarter, we believe it is now clear the company is running well ahead of our previous expectations and consensus, and we are raising estimates as a result. While upside is often the norm for Apple, we are still surprised by the current strength as we believe Apple is now running well ahead of expectations in all of its key business segments during what is typically a seasonally “sloppy” quarter. Overall,we are increasing our March quarter revenue and EPS estimates to $12.26 billion and $2.57 from $11.45 billion and $2.27, respectively. To put this in perspective, the March quarter typically represents Apple’s seasonal nadir, and our estimates would imply the March quarter of 2010 would be the second strongest quarter in company history (including seasonally strong December quarters). In addition, this upside flows into our full year forecast. We are now looking for fiscal 2010 revenues and EPS of $56.49 billion and $12.53 versus our previous $54.4 billion and $11.83, respectively. On a calendar basis, we expect respective revenues and EPS of $59.43 billion and $13.23 for 2010. For fiscal 2011, we are now looking for respective revenues and EPS of $65.34 billion and $14.55, versus $62.31 billion and $13.64 previously. For calendar 2011, we are now expecting revenues and EPS of $66.32 billion and $14.72, respectively. We note the following key takeaways from our revisions:

■Raising estimates and 12-month target price to $300. As we approach the end of Apple’s March quarter, we believe it is now clear the company is
running well ahead of our previous expectations and consensus, and we are raising estimates as a result. While upside is often the norm for Apple, we
are still surprised by the current strength, as we believe Apple is now running well ahead of expectations in all of its key business segments during
what is typically a seasonally “sloppy” quarter. Overall, we are increasing our March quarter revenue and EPS estimates to $12.26 billion and $2.57 from
$11.45 billion and $2.27, respectively. To put this in perspective, the March quarter typically represents Apple’s seasonal nadir, and our estimates would imply the March quarter of 2010 would be the second strongest quarter in company history (including seasonally strong December quarters). As a result of our earnings revisions and increasing confidence in the story, we are raising our 12-month target price to $300 from $275 previously.

More Research here


It Feels Like Christmas

No comments:

Post a Comment