Analyst Upgrades AAPL, Cites Long-Term Growth Potential

by , 9:30 AM EDT, April 7th, 2008

Thomas Weisel Partners upgraded Apple's stock Monday, citing the company's long-term growth potential as a primary reason for the upgrade. In a research note to clients, analyst Doug Reid placed a price target on the stock at US$195 per share, up from $188. He is estimating profits at $5.23 per share for fiscal 2008, up from $5.03 per share.

Mr. Reid rated Apple's stock "Overweight," meaning that the stock should perform better than other stocks in the same category. This is a bump up from "Market Perform," a rating for stocks the analyst expects to perform in line with the markets.

The research note also said that Apple should outperform other tech forms in terms of its operating margins, contributing to an expected 24% compounded growth over the next five years. During that time, the analyst expects Apple to continue, "defining and dominating new media-centric consumer product categories."

At this writing, the markets will open in just a few minutes. AAPL closed on Friday at $153.08 per share.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

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