Credit Suisse Starts AAPL Coverage, $500 Target

| Apple Stock Watch

Apple stock: It's a-climbin'Kulbinder Garcha from Credit Suisse began covering Apple for investors on Thursday, and started off with a target price of US$500 for the Mac, iPhone and iPad maker’s stock.

Mr. Garcha expects Apple will do well thanks to the popularity of the iPhone, according to Forbes. “Across the key smartphone success factors of software, services, product portfolio, distribution, brand, [intellectual property], and chip set efficiency, we believe, three years after the launch of the iPhone, few competitors have managed to narrow Apple’s advantage,” he said.

iPhone sales will hit 72 million units by the end of fiscal 2011 and 112 million in fiscal 2012, according to his estimates.

He also expects the iPad will earn Apple some $34 billion by the end of fiscal 2012, and that iPad gross margins will hit 35 percent by the end of fiscal 2011.

Along with his $500 target price, Mr. Garcha is rating Apple’s stock as “Outperform.” Apple is currently trading at $338.74, up 8.73 (2.65%).

Comments

prl53

So, when is the SEC going to investigate JMP and their obvious stock manipulation? When I posted this comment, AAPL was trading up 8.48, chopping in half the drop from yesterday. I wonder how many investors from JMP are making money today.

mhikl

Exactly, pr153. But I think the fear over Japan’s problems may have had probably caused the concern. But still, JMP should be investigated. It tried again yesterday evening to influence the pre-trading market to little or no effect.  Credit Suisse is more credible.

In the long term (and longer short term) it really doesn’t matter. Apple is the 21st Century’s leading corporate role model devising the rules for success in our new century. The sneakers Apple is wearing will keep it light of foot to breeze to new heights for a long time to come.

It’s a “Role Out the Barrel” kind of iTune.

Lee Dronick

It?s a ?Role Out the Barrel? kind of iTune.

What role will the barrel be playing? Not that I am making you the butt of a joke. smile

Seriously, you and prl53 have good points. Unless the disaster in Japan destroyed factories making components for Apple then the supply problem will be temporary.

prl53

What bothers me are articles like this from Barron’s,
http://online.barrons.com/article/SB50001424052970203757604576204983809299472.html?ru=yahoo&mod=yahoobarrons
that say the XOOM might take away sales from Apple because Apple’s having supplier problems. I can’t believe that Motorola wouldn’t be affected by the same manufacturing problems Apple might be having so why are these analysts just throwing out garbage like this?

I’m not registered on Barron’s so I didn’t read the entire article but the caption is what upsets me—and I majored in graphic communication in college so I am aware of the methods used by people to manipulate information. I didn’t take a class in it but wouldn’t be surprised if some schools offered classes in this.

Lee Dronick

I majored in graphic communication in college so I am aware of the methods used by people to manipulate information. I didn?t take a class in it but wouldn?t be surprised if some schools offered classes in this.

From what I understand when the tuna industry wanted consumers to switch from canned salmon to canned tuna that they used the phrase “Guaranteed not to turn pink in the can” (I realize that I am setting myself up for a butt joke). Of course there is nothing wrong with canned salmon being pink colored, but it got people to try canned tuna.

prl53

From what I understand when the tuna industry wanted consumers to switch from canned salmon to canned tuna that they used the phrase ?Guaranteed not to turn pink in the can? (I realize that I am setting myself up for a butt joke). Of course there is nothing wrong with canned salmon being pink colored, but it got people to try canned tuna.

Not to continue any butt jokes but even the species of salmon called “pink” isn’t pink, it’s a light shade of red/orange. I’m talking about native salmon, not the farmed stuff Costco buys that is fed cornmeal with food coloring (yes, this is from a Costco person and says as much on the label). The darkest red/orange species of salmon is sockeye and is fantastic. I live in the Pacific NW and eat it as much as possible. King and Coho salmon is lighter but still not pink, even when cooked.

As for tuna, it depends on whether you’re eating ahi tuna or albacore. Overcook either and it turns light gray, something I guess most people will eat instead of the brilliant red of ahi.

I’m getting hungry. I’ll grab a quick bite from a can of smoked sockeye salmon (rather have fresh cooked but you eat what you can get).

Lee Dronick

I live in the Pacific NW and eat it as much as possible. King and Coho salmon is lighter but still not pink, even when cooked.

Oh yeah. When I was in the Navy I lived on Indian Island, near Port Townsend, WA. I miss the fresh seafood, I miss living up there.

Gotta run for a while. You all have a great afternoon.

mhikl

pr153,
I tried smoking a Sockeye but couldn’t keep it lit and got no kick. I’m joking. Grew my first moustache in Rupert BC so I know my NA salmons. People from the East Coast say Atlantic beats Sockeye, and don’t try arguing salmon with a Scotsman. I have never tried natural Atlantic salmon and won’t touch its bastard child, that farmed orange devil.

I would say JMP is farmed and Credit Suisse, Sockeye. (Just trying to keep on topic.)

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