Canaccord Raises AAPL on Strong iPhone, iPad Sales Estimates

| Apple Stock Watch

Apple stock graphCanaccord Genuity analyst Michael Walkley expects Apple will maintain its dominating position in the smartphone and tablet markets and will be able to continue obtaining parts for its mobile devices despite the earthquake and tsunami disasters that recently struck Japan. Mr. Walkley is certain enough of his projections that he raised his target price for Apple’s stock from US$460 up to $480.

“Based on strong sell-through trends during March for both iPhone and iPad and our belief Apple is successfully leveraging its leading market position to secure component supply through the Japanese tragedy, we believe the company will maintain dominant value share of both the tablet and smartphone markets,” Mr. Walkley said. “We maintain our BUY rating with an increased price target of $480 from $460.”

Based on his research, Mr. Walkley said the iPhone 4 was the top selling smartphone for Verizon and AT&T in March. He added “With Verizon not allowing subsidies to customers still under a two-year contract, we anticipate steady upgrades by Verizon customers over the next several quarters and believe the iPhone will remain the top-selling smartphone at Verizon throughout calendar year 2011.”

He is also expecting Apple will break from its historical pattern of updating the iPhone in July and will release new models this year in September. If so, the later than usual launch date would be strategic instead of “poor execution.”

“With the potential to include LTE and NFC technologies, we believe this would give Apple more time to include these new technologies in an iPhone 5,” Mr. Walkley said. “Further a launch closer to the holiday selling season could make sense given the iPad 2’s recent launch and strong demand.”

Looking forward, Mr. Walkley now expects Apple will some 36.5 million iPads by the end of 2011. His EPS for 2011 is down from $22.92 to $22.72 based on lower gross margin assumptions, but is increasing his 2012 EPS estimate from $25.60 to $26.64.

Apple is currently trading at US$344.56, up 0.39 (0.11%).

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Comments

Constable Odo

Today it appears as though Apple shares are falling down no matter how high target prices are set.  Analysts seem to be setting up Apple for a disastrous earnings result and share price collapse.  Analysts keep talking about Apple being affected by the Japan disaster and no other computer company appears to be affected by it.  That is bad news.  Look for a flurry of downgrades right before earnings to drop Apple shares close to $300.  The stock market system has become extremely deceptive.

geoduck

The stock market system has become extremely deceptive

Become? Seems to me that this is SOP.

Hercules Rockefeller

AAPL hasn’t done much but go down lately and it doesn’t matter how many products they release or sell. That tells me the stock is already over valued. There’s no way I’d buy AAPL at these prices I don’t care what these so called experts are predicting. They’re setting everbody up for a big fall.

RonMacGuy

There?s no way I?d buy AAPL at these prices I don?t care what these so called experts are predicting. They?re setting everbody up for a big fall.

You obviously don’t understand how the stock market works and how companies are valued.  Go back to your Angry Birds game and let the big boys decide on stock valuation!!

grin

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