The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Apple Outlook is Conservative

Analyst: Apple Outlook is Conservative

by , 10:50 AM EST, January 3rd, 2007

Investors may be underestimating Apple Computer's value in 2007 in contrast to 2006, according to American Technology Research analyst Shaw Wu. He commented "As we look out over the next 6 to 12 months, consensus estimates, in our view, look reasonable, and will likely prove conservative, a very different scenario than in 2006. "

He added "One of our key concerns on Apple in 2006 was that we believed published consensus estimates were too aggressive (particularly revenue) and no where near Apple's guidance, but more importantly, didn't make any logical (financial or business) sense."

Mr. Wu feels that Apple's estimates have finally reset, which will give the company room to surprise investors on the upside. The company's expected product line up for 2007, which includes Mac OS X 10.5, the iTV home theater appliance, refreshed iPod models, new Macs, and possibly a cell phone product, should offer strong momentum throughout the year.

The December quarter will likely show US$6.4 billion in revenue and $0.79 in EPS along with 15.5 million iPods sold.

For fiscal 2007, Mr. Wu is estimating Apple will post $23 billion in revenue and $2.85 EPS. Looking forward to 2008, he predicts Apple will report $28.1 billion in revenue and $3.50 EPS. That estimate is based on 23 percent growth in Mac sales to 8.8 million units, 9 percent growth in iPod sales to 47.3 million units, and an additional $326 million in sales from cell phone products.

Mr. Wu is maintaining his "Buy" rating for Apple, and a target price of $99. Apple stock is currently trading at $85.74, up 0.90 (1.06%).

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.


Recent TMO Headlines - Updated October 24th

Sun, 12:04 PM
MGG 628: Cool Stuff Found and The DNS Achilles Heel
Fri, 10:59 PM
Apple Pay Used to Buy $1M Aston Martin DB5 Luxury Car
Fri, 10:23 PM
Perpetrator of Friday's Internet Outage Comes Clean
Fri, 9:35 PM
macOS Sierra: Disable Auto-Logout if Sierra Enabled It
Fri, 6:26 PM
Apple Regent Street Opening Photo Gallery
Fri, 5:59 PM
Apple and IBM Partnership: Macs, iOS and Watson Are The Glue
Fri, 5:05 PM
Teens Steal $13,000 in iPhones from Natick Collection Apple Store
Fri, 1:41 PM
TMO Daily Observations 2016-10-21: iPhone 7 Fire, Microsoft Surface on the Rise
Fri, 11:22 AM
iPhone 7 Blamed for Car Fire
Fri, 9:00 AM
HYFY Pro 1-Year Plan: $25
Fri, 8:00 AM
King of the Hill Intro in Pixel Art
Thu, 8:19 PM
Eddy Cue Dampens Expectations for Original Apple TV Programming
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!