Analyst Raises Apple Target Price to $205
Analyst Raises Apple Target Price to $205
by , 9:20 AM EDT, July 20th, 2007
Piper Jaffray analyst Gene Munster has a rosy outlook for Apple thanks in part to iPhone-generated revenue. He expects iPhone revenue to add an additional US$2.49 to the calendar year 2009 EPS of $4.82, and as such is raising his target price for Apple stock from $160 to $205.
Mr. Munster is now modeling 45 million iPhones sold for calendar year 2009. "One thing we learned with the iPod is that when a device is game-changing, the demand will come," he said.
He also believes that AT&T is paying Apple $3 per month for every customer that has an iPhone contract, and $11 per month for new subscribers that have switched from other carriers. That will only add about $0.02 to Apple's EPS in 2007, but by 2009 that will jump to $0.58.
In addition to his new $205 target price, Mr. Munster is maintaining his "Outperform" rating for Apple's stock. APple is currently trading in the pre-market at $142.65, up 2.65 (1.89%).
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.
Observer Comments
I did buy about 400 shares back then. However, I have been stupid and tried being a day trader with them. The result is I have far less then I would have if I just held on to it. Since at the time I was essentially investing with my small life savings, I would get nervous when Apple would take its big swings. Now I just forget about it. I have faith in the company, and the swings bother me, but I don't pull the trigger.
Quotegeoduck wrote:
D@mn I wish had bought aapl when I saw it at $12 in the mid '90s. Not only is it around $140 now and going up, it has split a couple of times since then.
Comments are currently closed. Please email the author instead.
Recent Headlines - Updated July 6th
- Mon, 11:17 AM
- Ted Landau's User Friendly View - Apple’s LED Cinema Display: A Too Short Story
- 11:11 AM
- Product News - Photo Recovery for Mac Adds Photoshop Support
- 10:39 AM
- Hot Forum Topic - iPhones in Education
- 8:47 AM
- News - Apple Employee Injured in Store Shooting
- Fri, 10:29 AM
- News - Apple Warns of Learning Interchange Security Breach
- 7:30 AM
- News - Happy Fourth of July!
- Thu, 6:07 PM
- TMO Scoop - Psystar Moves to Drop Bankruptcy Ahead of Apple Legal Battle
- 5:37 PM
- News - Uncomfirmed Reports Say Apple & Nvidia On The Outs
- 4:57 PM
- News - Microsoft Sick Over Barf Ad
- 4:09 PM
- Product News - KRK Ships R6 Passive Studio Monitor for Recording
- 3:45 PM
- John Martellaro's Blog - Particle Debris (week ending 7/2) Juiced, Joost and Goosed
- 3:12 PM
- Product News - ExactScan 2 Pro Released
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
OWC: Big Drives, High Performance - Not High Prices! SATA 3.5" up to 1.5TB. Notebook up to 500GB. FW up to 6.0TB. 1.0TB Drive Models from as low as $97.99 www.MacSales.com
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!
RamJet Memory: MacBook and MacBook Pro 4GB kits for $57.99! Mac Pro 4GB Kits $99.99! iMac and Mac mini 4GB Kits for $57.99! 1TB SATA Hard Drives for $109.99! Click hereFor the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.
