Goldman Sachs Raises AAPL Target to $635 on Strong iPhone Sales Expectations

| Apple Stock Watch

Goldman Sachs analyst Bill Shope thinks Apple will report very strong iPhone and iPad sales figures during its first fiscal quarter earnings report, and because of that he is raising his 12-month target price for the company's stock from US$620 up to $635.

Analyst: iPhone sales to drive strong Q1 earnings figuresAnalyst: iPhone sales to drive strong Q1 earnings figures

Mr. Shope is projecting a strong iPhone 5S and iPhone 5C mix, along with good iPad Air sales, to push Apple's revenue to $58.42  billion, up from his earlier estimate of $57.28 billion. He's projecting first fiscal quarter iPhone shipments to hit 55.667 million, iPads to come in at 26.4 million, iPods at 8.241 million, and Macs at 4.406 million.

Apple's first fiscal quarter starts in December, which means it includes holiday sales. That, coupled with the recent iPhone and iPad refresh, should help boost the company's bottom line.

Looking forward, Mr. Shope raised his fiscal 2014 revenue estimate from $185.2 billion with a $45.19 EPS up to $188.14 billion and $45.81 EPS.

Apple is currently trading at $556.28, up 7.21 (1.31%).

[Thanks to Street Insider for the heads up]

Comments

vpndev

And Carl Icahn has been buying more shares.

Constable Odo

This man has cried “wolf” too many times.  Apple’s share price barely moved a ripple on the news.  Apple has become a horrible laggard as far as most tech company investments go.  It certainly is true that Apple is keeping most of the profits for itself.

MacFrogger

Constable said: “Apple has become a horrible laggard as far as most tech company investments go.”  Agreed. But another way to look at this is that its stock price is overdue for a serious increase.  Will the catalyst be record sales this quarter? The long-awaited intro of the iWatch, Apple TV, or some other surprise product?  I don’t know, but if you wait til then you will miss out.

Constable also said: “It certainly is true that Apple is keeping most of the profits for itself.”  Agreed. But again how much do you think the stock price will spurt if - and I believe its more likely when - they announce a dividend increase?

This may be last opportunity to buy at a relatively reasonable P/E a company that actually makes money, unlike Amazon or even Google (yes, the latter makes money but its P/E is ridiculous!)  Disclaimer: Yes, I own a small amount of APPL but I’m not trying to push the stock…

Log-in to comment