Analysts up targets as Apple valuation surpasses Hewlett-Packard

Posted:
in General Discussion edited January 2014
Several Wall Street analysts increased their price targets on shares of Apple Inc. Thursday, following a late-night surge in the gadget makers stock that saw its valuation surpass that of industry heavyweight Hewlett-Packard.



Shares of Apple rose over 7 percent Wednesday in after hours trading on the Nasdaq stock market after the company said third quarter profits rose some 73 percent to $818 million.



The late night surge boosted the iPhone maker's market cap -- or perceived public value -- to over $127 billion, leapfrogging long-time rival HP, which is valued at approximately $124 billion.



After surpassing Dell's valuation earlier in the year, Apple is now treading on the heels of several other high-tech firms, include Intel ($141 billion) and IBM ($175 billion).



On average, analysts on Wall Street believe Apple shares are poised to gain even further ground in the coming months, with several using research notes on Thursday to increase their 12-month price targets on shares of the Cupertino-based firm.



"We believe bears remain too pessimistic in underestimating Apple's profit potential and ability to generate strong cash flow," said AmTech analyst Shaw Wu, who upped his target to $185 from $165. "Moreover, bears have also underestimated bulls' ability to form more realistic expectations and focused too much on overzealous and sometimes outright irrational estimates."



Over at Pacific Crest, analyst Andy Hargreaves made a similar move in bumping his old $130 target to $175. "Back-to-school sales, expanded distribution and a likely refresh of the iMac product lineup should drive Mac sales growth above 30 percent in fiscal [Q4]," he told clients. "We believe that Apple can continue to drive strong growth in high-margin service and accessory sales, which should benefit gross margin, despite the likely negative impact of rising component costs."



Also commenting on an impending overhaul to the iMac line (as well as full-screen iPods) was Goldman Sachs analyst David Bailey, who increased his Apple price target to $165. "iPhone hype notwithstanding, with the heart of Apple?s product cycle about to begin, we want to stay with the stock," he wrote in a note to clients. "In the September quarter, Apple will finish up a refresh of its entire Mac line-up, rounding it out with a redesigned iMac."



Other firms increasing their price target on Apple shares Thursday included JMP Securities ($160), Caris & Co. ($165), UBS ($175), Credit Suisse ($185), Deutsche Bank ($200), and PiperJaffray ($211).



Shares of Apple retreated only slightly from Wednesday evening's run-up and were trading up 6.75 percent, or $9.27, to $146.53 early Thursday afternoon.
«13

Comments

  • Reply 1 of 53
    crebcreb Posts: 276member
    Surpassing HP's valuation is not a surprise as anyone who is facile in the inner workings of HP knows they are living on borrowed time; is governed by a CEO who only knows how to increase the bottom line through head count cuts (and very little else); a company who's innovation and core values went down the drain with Bill and Dave.



    Apple deserves what they have earned, and will be a hallmark for tech in the decades to come...long after HP is only remembered as a garage somewhere in Silicon Valley.
  • Reply 2 of 53
    nceencee Posts: 836member
    Quote:
    Originally Posted by AppleInsider View Post


    Several Wall Street analysts increased their price targets on shares of Apple Inc. Thursday, following a late-night surge in the gadget makers stock that saw its valuation surpass that of industry heavyweight Hewlett-Packard.



    Shares of Apple rose over 7 percent Wednesday in after hours trading on the Nasdaq stock market after the company said third quarter profits rose some 73 percent to $818 million.



    The late night surge boosted the iPhone maker's market cap -- or perceived public value -- to over $127 billion, leapfrogging long-time rival HP, which is valued at approximately $124 billion.



    After surpassing Dell's valuation earlier in the year, Apple is now treading on the heels of several other high-tech firms, include Intel ($141 billion) and IBM ($175 billion).



    On average, analysts on Wall Street believe Apple shares are poised to gain even further ground in the coming months, with several using research notes on Thursday to increase their 12-month price targets on shares of the Cupertino-based firm.



    "We believe bears remain too pessimistic in underestimating Apple's profit potential and ability to generate strong cash flow," said AmTech analyst Shaw Wu, who upped his target to $185 from $165. "Moreover, bears have also underestimated bulls' ability to form more realistic expectations and focused too much on overzealous and sometimes outright irrational estimates."



    Over at Pacific Crest, analyst Andy Hargreaves made a similar move in bumping his old $130 target to $175. "Back-to-school sales, expanded distribution and a likely refresh of the iMac product lineup should drive Mac sales growth above 30 percent in fiscal [Q4]," he told clients. "We believe that Apple can continue to drive strong growth in high-margin service and accessory sales, which should benefit gross margin, despite the likely negative impact of rising component costs."



    Also commenting on an impending overhaul to the iMac line (as well as full-screen iPods) was Goldman Sachs analyst David Bailey, who increased his Apple price target to $165. "iPhone hype notwithstanding, with the heart of Apple?s product cycle about to begin, we want to stay with the stock," he wrote in a note to clients. "In the September quarter, Apple will finish up a refresh of its entire Mac line-up, rounding it out with a redesigned iMac."



    Other firms increasing their price target on Apple shares Thursday included JMP Securities ($160) and Deutsche Bank ($200).



    Shares of Apple retreated only slightly from Wednesday evening's run-up and were trading up 6.75 percent, or $9.27, to $146.53 early Thursday afternoon.



    This is all good stuff.



    I believe when folks look at the base of OLD iPod's out there, how many will purchase the new and improved when it comes out, then the New iPhones, New OS, and ALL of the other new stuff coming from Apple, this stock is just starting it's climb.





    Skip
  • Reply 3 of 53
    And now the #1 PC weenie in the world is admiting he likes Macs....And recommends them to other people.



    http://www.pcmag.com/article2/0,1895,2162397,00.asp



    Apple is a rocket blasting off.
  • Reply 4 of 53
    SpamSandwichSpamSandwich Posts: 31,417member
    Quote:
    Originally Posted by cygnusrk727 View Post


    And now the #1 PC weenie in the world is admiting he likes Macs....And recommends them to other people.



    http://www.pcmag.com/article2/0,1895,2162397,00.asp



    Apple is a rocket blasting off.



    Holy cow. Never thought I'd see that old crank changing his mind... then again, he never really tried it before, so it makes sense.
  • Reply 5 of 53
    melgrossmelgross Posts: 31,909member
    Quote:
    Originally Posted by CREB View Post


    Surpassing HP's valuation is not a surprise as anyone who is facile in the inner workings of HP knows they are living on borrowed time; is governed by a CEO who only knows how to increase the bottom line through head count cuts (and very little else); a company who's innovation and core values went down the drain with Bill and Dave.



    Apple deserves what they have earned, and will be a hallmark for tech in the decades to come...long after HP is only remembered as a garage somewhere in Silicon Valley.



    Hp is doing well, they've surpassed Dell as the world's number 1 PC supplier, they are making very good profits. They did have a bad patch, but then, so did Apple.
  • Reply 6 of 53
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by cygnusrk727 View Post


    And now the #1 PC weenie in the world is admiting he likes Macs....And recommends them to other people.



    http://www.pcmag.com/article2/0,1895,2162397,00.asp








    OMG... Dvorak is such a tool.



    All you need to know about the guy is summed in one passage in that article:



    Oh horrors. Dvorak is using a Mac. Hey, I figured since I'm known for ragging on the Mac all the time, I may as well speak from some experience, right?



    So let's get this straight... Dvorak has been bashing the Mac for, what is it now, decades?, and only now he's finally gotten around to actually knowing what the f*** he's talking about?



    Holy sh**, that's retarded even by his standards.



    In any case, it doesn't mean a thing. Dvorak is, first and foremost, a media WHORE, and he says things only to get hits. He bashed the Mac when he thought bashing it was popular, and now that its become obvious that Apple is pretty much unstoppable, he, like the little whore he is, jumps right on the bandwagon.



    Don't worry... if Apple experiences any bumps in the road at all, Dvorak will immediately jump off the bandwagon and bash again. Whatever it takes to get those hits. Because he's a W-H-O-R-E. End o' story.



    .
  • Reply 7 of 53
    obelixobelix Posts: 18member
    Quote:
    Originally Posted by TBaggins View Post


    OMG... Dvorak is such a tool.



    All you need to know about the guy is summed in one passage in that article:



    Oh horrors. Dvorak is using a Mac. Hey, I figured since I'm known for ragging on the Mac all the time, I may as well speak from some experience, right?



    So let's get this straight... Dvorak has been bashing the Mac for, what is it now, decades?, and only now he's finally gotten around to actually knowing what the f*** he's talking about?



    Holy sh**, that's retarded even by his standards.



    In any case, it doesn't mean a thing. Dvorak is, first and foremost, a media WHORE, and he says things only to get hits. He bashed the Mac when he thought it was popular, and now that its become obvious that Apple is pretty much unstoppable, he, like the little whore he is, jumps right on the bandwagon.



    Don't worry... if Apple experiences any bumps in the road at all, Dvorak will immediately jump off the bandwagon and bash again. Whatever it takes to get those hits. Because he's a W-H-O-R-E. End o' story.



    .



    Dvorak used to write for MacUser. So yes, he is a media whore, actually not believing what he is writing.
  • Reply 8 of 53
    melgrossmelgross Posts: 31,909member
    Quote:
    Originally Posted by TBaggins View Post


    OMG... Dvorak is such a tool.



    All you need to know about the guy is summed in one passage in that article:



    Oh horrors. Dvorak is using a Mac. Hey, I figured since I'm known for ragging on the Mac all the time, I may as well speak from some experience, right?



    So let's get this straight... Dvorak has been bashing the Mac for, what is it now, decades?, and only now he's finally gotten around to actually knowing what the f*** he's talking about?



    Holy sh**, that's retarded even by his standards.



    In any case, it doesn't mean a thing. Dvorak is, first and foremost, a media WHORE, and he says things only to get hits. He bashed the Mac when he thought it was popular, and now that its become obvious that Apple is pretty much unstoppable, he, like the little whore he is, jumps right on the bandwagon.



    Don't worry... if Apple experiences any bumps in the road at all, Dvorak will immediately jump off the bandwagon and bash again. Whatever it takes to get those hits. Because he's a W-H-O-R-E. End o' story.



    .



    Dvorak started his career using Apple products, including Macs. I'm sure he's used them as time went on, so that he could comment. We may not like him these days, but he's not stupid.



    But, like most all of those who undergo a conversion, he found bashing his former platform to be useful, and satisfying. How else could he explain moving to Windows, if it weren't better?



    Notice that he made it quite clear that he isn't moving to a Mac himself.



    I know Windows users who recommend Macs to people they don't want to bother helping, or who want something that PC's don't offer them, ease of use, and attractiveness. More people are putting their computers in the public areas of their homes these days.
  • Reply 9 of 53
    melgrossmelgross Posts: 31,909member
    Oops, double post.



  • Reply 10 of 53
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by Obelix View Post


    Dvorak used to write for MacUser.



    How long ago was that? From his comments in the PC Magazine article today, he seems quite unfamiliar with OS X.



    And remember, this is the same guy who said, when he first saw the Apple mouse, "There's no evidence that people want to use these things."



    In other words, he's kind of an idiot.



    .
  • Reply 11 of 53
    melgrossmelgross Posts: 31,909member
    Quote:
    Originally Posted by TBaggins View Post


    How long ago was that? From his comments in the PC Magazine article today, he seems quite unfamiliar with OS X.



    And remember, this is the same guy who said, when he first saw the Apple mouse, "There's no evidence that people want to use these things."



    In other words, he's kind of an idiot.



    .



    Actually, almost everybody thought the same thing about the mouse at the time, including, as I remember, most Apple II users.
  • Reply 12 of 53
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by melgross View Post


    Dvorak started his career using Apple products, including Macs. I'm sure he's used them as time went on, so that he could comment.



    He uses them occasionally... he just doesn't understand them.



    And, reading the PC Magazine article, it seems clear from his comments that he's not really up on OS X. He writes as if he hasn't touched a Mac in years.



    .
  • Reply 13 of 53
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by melgross View Post


    Actually, almost everybody thought the same thing about the mouse at the time, including, as I remember, most Apple II users.



    That wasn't my experience at all. Most everyone I knew at the time went, "Cool. This is MUCH easier."



    And I was an Apple II user in high school.



    .
  • Reply 14 of 53
    melgrossmelgross Posts: 31,909member
    Quote:
    Originally Posted by TBaggins View Post


    He uses them occasionally... he just doesn't understand them.



    And, reading the PC Magazine article, it seems clear from his comments that he's not really up on OS X. He writes as if he hasn't touched a Mac in years.



    .



    He understands them. Don't underestimate him.



    You might as well say that people who constantly bash the PC don't understand it either.



    He's pretty savvy. But his public persona has him as being brash. That's fine. There's nothing wrong with self promotion. He's not a journalist, as he would tell you himself.



    People on forums are much too quick to call people names when they don't like them.



    I've argued with him over the years. I'm not exactly shy myself. Sometimes he's right, and sometimes wrong. But, he bends when he has to.
  • Reply 15 of 53
    melgrossmelgross Posts: 31,909member
    Quote:
    Originally Posted by TBaggins View Post


    That wasn't my experience at all. Most everyone I knew at the time went, "Cool. This is MUCH easier."



    And I was an Apple II user in high school.



    .



    Then you didn't read the computer mags, or know very many people who used them. I remember very differently. The Apple press were about the only ones who didn't come out and dismiss it. But, they were financially bound to help Apple (as they are now), as their futures were tied up with them.
  • Reply 16 of 53
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by melgross View Post


    He understands them. Don't underestimate him.



    You might as well say that people who constantly bash the PC don't understand it either.



    He's pretty savvy. But his public persona has him as being brash. That's fine. There's nothing wrong with self promotion. He's not a journalist, as he would tell you himself.



    People on forums are much too quick to call people names when they don't like them.



    I've argued with him over the years. I'm not exactly shy myself. Sometimes he's right, and sometimes wrong. But, he bends when he has to.





    Sorry Mel, you may have some respect for the guy, but many don't.



    I think Dvorak himself is the best spokesperson as to how he's such a whore, as he himself admits in this video:



    http://www.youtube.com/watch?v=SAWDYaWAVQQ





    Pretty ugly stuff. \



    .
  • Reply 17 of 53
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by melgross View Post


    Then you didn't read the computer mags, or know very many people who used them. I remember very differently. The Apple press were about the only ones who didn't come out and dismiss it. But, they were financially bound to help Apple (as they are now), as their futures were tied up with them.





    The print computer mags have never really mattered to me, or to many people, for that matter. Why should they? It's a vehicle for advertising, essentially. So is AI, but at least here you get same day information (for free) and honest opinions directly from other users... not so with print, unless you count the token couple of 'letters to the editor'.



    Your point is taken, though. The nicest thing you can say about Dvorak re: the Apple mouse is that he was just as wrong as some other people regarding that. But he still wasn't right.



    .
  • Reply 18 of 53
    mactelmactel Posts: 1,275member
    I would agree that a new iMac would come out sooner than later, but a new full screen iPod most likely wouldn't come out until October at the latest.



    The school promotions have to end and the flash supply has to normalize before Apple will up the Shuffle, Nano, and Video iPods. We'll see the Nano get video capability as many competing products of the same size or smaller have video playback.



    I'd like to see the 3G Shuffle with an LCD screen too. Though I doubt the 3G Shuffle will come out any earlier than spring of 2008.
  • Reply 19 of 53
    Quote:
    Originally Posted by melgross View Post


    He understands them. Don't underestimate him.



    You might as well say that people who constantly bash the PC don't understand it either.



    He's pretty savvy. But his public persona has him as being brash. That's fine. There's nothing wrong with self promotion. He's not a journalist, as he would tell you himself.



    People on forums are much too quick to call people names when they don't like them.



    I've argued with him over the years. I'm not exactly shy myself. Sometimes he's right, and sometimes wrong. But, he bends when he has to.



    For the record, I don't hate the man or have any ill will towards him. Nor did I mean to get this thread off track.



    I just wanted to point out with Apple's financial rise there is a cultural shift going on as well. When the proudest Mac Basher around grumbles about having to admit he likes Macs. That is a sign of the times. That is another sign of Apple's true resurgence.



    (now Apple bring on the friggin new iMacs already.)
  • Reply 20 of 53
    SpamSandwichSpamSandwich Posts: 31,417member
    Quote:
    Originally Posted by cygnusrk727 View Post


    For the record, I don't hate the man or have any ill will towards him. Nor did I mean to get this thread off track.



    I just wanted to point out with Apple's financial rise there is a cultural shift going on as well. When the proudest Mac Basher around grumbles about having to admit he likes Macs. That is a sign of the times. That is another sign of Apple's true resurgence.



    (now Apple bring on the friggin new iMacs already.)



    Hear, hear!
Sign In or Register to comment.