Analyst Raises Apple Target Price to $205 || The Mac Observer

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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

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Close Name:geoduck Posts: 1922 Joined: 30 Dec 2003
Fri Jul 20, 2007 12:08 pm Subject:

At what point do we start expecting another stock split?

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Close Name:Terrin Posts: 414 Joined: 29 Jan 2006
Fri Jul 20, 2007 1:06 pm Subject:

We don't. I suspect Apple will learn from Google and try to keep the price of entry high. In theory, this protects the stock from substantial daily fluctuation.

Quote
geoduck wrote:
At what point do we start expecting another stock split?

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Close Name:geoduck Posts: 1922 Joined: 30 Dec 2003
Fri Jul 20, 2007 1:33 pm Subject:

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.

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Close Name:Terrin Posts: 414 Joined: 29 Jan 2006
Fri Jul 20, 2007 2:42 pm Subject:

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.

Quote
geoduck 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.

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Close Name:Guest
Fri Jul 20, 2007 2:52 pm Subject:

My Dad bought me 5 shares as a gift when they were at $20 in 2000. Wish I'd known he was doing that, I would have had him buy more...

Seriously thinking of cashing out at this point, maybe I should wait...

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Close Name:Guest
Fri Jul 20, 2007 9:15 pm Subject: AAPL purchase

I bought and held at a split adjusted $7.50/share. It's been a great run. I plan to keep holding for a fair bit longer

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