Cramer Raises AAPL Target to $300

October 21st, 2009 at 9:42 AM - Apple Stock Watch by Jeff Gamet

Like other analysts, Mad Money's Jim Cramer was pleased with Apple's fourth quarter earnings report, so he bumped his twelve month target for the company's stock from US$264 up to $300. He expects Apple will eventually dominate the cell phone market, too, just as it has done in the MP3 player market with the iPod, according to TheStreet.com.

Apple reported record Mac and iPhone sales for the September quarter with 3.05 million Macs, 7.4 million iPhones, and 10.2 million iPods sold. GAAP revenue for the quarter was $9.87 billion, and profits were $1.67 billion, or $1.82 earnings per share. Non-GAAP revenue was $12.25 billion, while non-GAAP profits were $2.85 billion.

Mr. Cramer isn't the only analyst that's excited about Apple's prospects. UBS analyst Maynard Um raised his target price to $280, and Broadpoint AmTech's Brian Marshall pushed his target price up to $235.

"In our view, Apple is the best technology company on the planet with numerous catalysts on the horizon," Mr. Marshall said.

Demand for Apple's products is so high that the company is having trouble keeping up, and that's a big plus in Mr. Cramer's book. "Where else in this recession-ridden economy are there shortages for high-end devices?" he said.

Apple is currently trading at $201.42, up 2.45 (1.23%).

4 Observer Comments

Quote Sir Harry Flashman said on October 21st, 2009 at 9:36 AM:

When doing a story about Jim Cramer the copy should be all bold

Joking aside, I am pleased with the current value of my Apple stock.

Quote Constable Odo said on October 21st, 2009 at 10:06 AM:

I’m definitely pleased with Apple’s current performance although it took a two-year detour along with the rest of the market although it shouldn’t have. I’m hoping for $215 to $220 by the end of the year. It seems doable with the China Unicom deal, the newest iPod Nano and those gorgeous new 27” iMacs. I’m sure that anyone who sees one in an Apple store would have to have one.

Quote tundraboy said on October 21st, 2009 at 1:16 PM:

I don’t know why Apple doesn’t release a feature phone/iPod. They have a wide price point range on iPods, why not do the same for the phones? Millions upon millions of kids who can’t afford an iPhone would buy an iPod phone in a heartbeat. Then they’d really send Nokia reeling.

Quote Terrin said on October 21st, 2009 at 1:52 PM:

Partially because Apple would probably steal sales from itself and this would dilute the value of developing for the iPhone platform. Developers like that their applications will work on just about any model iPhone or iPod Touch.

If Apple releases a different phone, I suspect it will not run third party applications.

I don’t know why Apple doesn’t release a feature phone/iPod. They have a wide price point range on iPods, why not do the same for the phones? Millions upon millions of kids who can’t afford an iPhone would buy an iPod phone in a heartbeat. Then they’d really send Nokia reeling.

Page 1 of 1 pages

Recent Headlines - Updated November 21st

Fri, 7:07 PM: Games - Soccer Sim Championship Manager 2010 Released for Mac
6:47 PM: Games - EA Publishes Original Monopoly for iPhone
6:15 PM: News - Original Apple I on Ebay for $50K, w/Letter from Steve Jobs
6:11 PM: Games - New iPhone Games: Secret of the Lost Cavern Ep 1, New DJ Nights, More
5:47 PM: Games - Star Trek D-A-C Game Headed to the Mac Next Month
4:57 PM: Product News - TidBITS Releases “Take Control of Syncing Data in Snow Leopard”
4:26 PM: John Martellaro's Blog - Particle Debris (week ending 11/20) Stationery Pads Go Poof
2:59 PM: Free on iTunes - Musée du Louvre, Art Lite, SketchBook Mobile X and More.
1:50 PM: Deal Brothers - Acer P215H bmid 21.5” Widescreen LCD Monitor: $139.99
11:24 AM: TMO Appearances - Jeff Gamet Shares More Holiday Gift Ideas on MacJury
10:43 AM: Product News - Cocktail 4.5 for Leopard Adds QuickLook Cache Clearing
10:06 AM: News - Hack Enables Mac OS X 10.6.2 on Netbooks

The Mac Observer Reader Specials

TypeStyler For Mac OS X is Now Shipping! Download The Free Fully Functional 60 Day Tryout at www.typestyler.com
OWC: Get the Right Memory / Ram for your Mac. Top Quality, Competitive Prices, Lifetime Warranty. Expert Support and Video Installation Guidies too! 4.0GB Matched Sets from $87.99, Options up to 32GB. Click here
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!
For 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.