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UBS bullish on Apple, raises target price to $54

post #1 of 7
4/14/05 at 8:10am
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Saying Mac sales could see a boost over the next several quarters, UBS Investment Research raised its estimates on Apple today, citing a new target price of $54 a share.

To factor in higher margins and stronger sales of iPods and portables, the firm raised its June quarter earnings-per-share (EPS) estimate from 24 cents to 30 cents, and its fiscal year 2005 (FY05) estimate from $1.08 to $1.33.

UBS also boosted its FY06 EPS estimate from $1.30 to $1.60 to reflect a much higher operating margin of 12.1%, driven by lower expenses and higher revenues. The firm previously assumed an operating margin of 9.9%.

"While some may have expected higher iPod sales & higher guidance, we believe results are impressive in terms of margins & laptop sales," said analyst Ben Reitzes. "We also believe desktop sales in March were adversely impacted by anticipation of the Tiger OS set to ship in the June quarter. As a result, Mac sales could see a boost over the next several quarters from current levels."

To reflect its higher estimates, UBS raised its price target on Apple from $50 to $54, which it says is still based on EV/sales of slightly more than two times higher than Apples "pre-bubble" multiple but in line with many of its peers.

Details to follow.
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post #2 of 7
4/14/05 at 8:20am
Why does the price always drop right after these predictions? The AI front page shows us at about $39 right now, the first time below $40 since the split.
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post #3 of 7
4/14/05 at 8:25am
39 and falling

if I had some cash I'd buy . . . then sell next time it gets to 42

ah but the markets going to crash big time soon . . . we'll be living in caves in about ten years . . . so don't worry . .

hopefully Apple R&D is looking into stone based computing . . .

"They never stop thinking about new ways to harm our country and our people, and neither do we."
--George W Bush

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--Franklin Miller.

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"They never stop thinking about new ways to harm our country and our people, and neither do we."
--George W Bush

"Narrative is what starts to happen after eight minutes
--Franklin Miller.

"Nothing...

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post #4 of 7
4/14/05 at 9:23am
Quote:
Originally posted by Guartho
Why does the price always drop right after these predictions? The AI front page shows us at about $39 right now, the first time below $40 since the split.

The price has fallen because Apple has gone quite conservative with next quarters guidance. As well, some analysts had been looking for higher revenues this quarter.
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post #5 of 7
4/14/05 at 10:22am
Darn stock traders. What do they know?
I never get tired of being right all the time... but I do get tired of having to prove it to you again and again.
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I never get tired of being right all the time... but I do get tired of having to prove it to you again and again.
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post #6 of 7
4/14/05 at 11:49am
F*CK !!!

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post #7 of 7
4/14/05 at 11:52am
Quote:
Originally posted by pfflam
39 and falling

if I had some cash I'd buy . . . then sell next time it gets to 42

and make almost no money after paying brokerage fees. right after the split was the best time to sell. imo. everyone still in (or about to buy) apple stock that's expecting to make big money in a short period of time is hopeless.
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