Piper Jaffray Bumps Apple Target Share Price to $103
TMO Reports - Piper Jaffray Bumps Apple Target Share Price to $103
by , 10:00 AM EST, January 13th, 2006
Piper Jaffray analyst Gene Munster, reacting to Apple's Macworld product announcements as well as the fact that the company this week surpassed his previous US$80 12-month target share price, on Friday increased his outlook to $103.
"There has been growing chatter that Apple is becoming a new representation of an 'Internet bubble stock,'" Mr. Munster wrote in his research report, a copy of which was obtained by The Mac Observer. "We believe this label is unfair and we would highlight the following as reasons why AAPL shares can appreciate to our price target of $103 by year end:
"We believe earnings will grow significantly in CY06 (>35%). While 2005 was the year of iPod growth, we believe 2006 is poised to be the year of both iPod growth and, more importantly, Mac market share gains.
"In addition to new iPods and Intel-based Macs, we expect Apple to look to new categories (ex: mobile phones, other CE entertainment devices) by late CY06."
Looking ahead to next week's earnings report, Mr. Munster expects Apple to be "fairly conservative" when it issues its guidance for the March quarter. He added that Wall Street, however, "will likely look past the conservative nature of guidance, given Apple has exceeded revenue guidance by an average of 12% for the last 3 quarters."
Mr. Munster also expects Apple to split its stock again soon, something he sees as "a mild positive." The company split its stock last February, when it was trading in a range similar to the one it is in now.
At 9:40 AM EST on Friday, Apple shares were trading for $85.77, up $1.48, or 1.75%, for the day. The stock has been on an upward trajectory since CEO Steve Jobs on Tuesday announced December quarter results that were higher than even Wall Street's expectations.
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
- Mon,12:40 PM
- Three Ways to Protect your Apple Watch (and One Way Not To)
- Fri,7:07 PM
- Apple’s First Scripted Series will Star Dr. Dre
- 7:07 PM
- Adobe Creative Cloud Bug Deletes Files Without Permission
- 6:00 PM
- AT&T Says it’s 5G Network will be 100x Faster than LTE
- 5:01 PM
- My Classic Hard Disks Are Spinning Right into the Graveyard
- 4:54 PM
- Bumprz 2: Minimalist Protection for iPhone on Kickstarter
- 4:51 PM
- MGG 592: Taming Wi-Fi Chaos
- 1:45 PM
- OK Go’s Parabolic Flight Video for ‘Upside Down & Inside Out’
- 1:35 PM
- TMO Daily Observations 2016-02-12: 5G Wireless Speed Tests, Apple’s Growing Patent Infringement Mess
- 1:31 PM
- Xtra Drive Lightning Flash Drive with 16GB Micro SD Card: $71.99
- 12:55 PM
- How to Fix the ‘You Are Not Signed into Apple Music’ Error
- 10:38 AM
- Immersion Sues Apple, AT&T Over Haptic Feedback Patents