http://macdailynews.com/index.php/weblog/comments/23842/
Barclays Capital ups Apple price target to $285, says iPad priced to move
Barclays Capital has upped their price target on Apple Inc. (AAPL) to $285, saying the company's new iPad is "priced to move."
In terms of features and services, Barclays' analysts believe the iPad's launch was largely in line with expectations. However, the pricing is much more attractive than analysts expected and clearly shows Apple's desire for mass market appeal. Even accounting for potential cannibalization of other products, Barclays' analysts believe iPad adds at least $1.00 in EPS and $20 plus in value to Apple's shares. Barclays Capital reiterates their "Overweight" rating on Apple.
Barclays' analysts are raising estimates to include iPad and related revenues, partially offset by some cannibalization of other devices. The firm estimates that Apple will ship 2.9 million devices in FY10 and 7.3 million in FY11.
Barclays estimates fiscal Q2 EPS of $2.32 (up from $2.29) on 29% year-over-year revenue growth to $11.74B (from $11.6B). For FY10, the firms now estimates EPS of $12.00 (from $11.60) on 31% YOY revenue growth to $56.1B (up from $54.5B). For FY11 Barclays estimates EPS of $13.75 (from $12.75) on 15% YOY revenue growth to $64.5B (up from $60.2B).
Given higher estimates, Barclays Capital's new price target for Apple Inc. (AAPL) is $285 based on 17x their new FY11 EPS estimate of $13.75 excluding interest income ($0.15) while adding $51 forward 12-month cash.
Barclays Capital ups Apple price target to $285, says iPad priced to move
Barclays Capital has upped their price target on Apple Inc. (AAPL) to $285, saying the company's new iPad is "priced to move."
In terms of features and services, Barclays' analysts believe the iPad's launch was largely in line with expectations. However, the pricing is much more attractive than analysts expected and clearly shows Apple's desire for mass market appeal. Even accounting for potential cannibalization of other products, Barclays' analysts believe iPad adds at least $1.00 in EPS and $20 plus in value to Apple's shares. Barclays Capital reiterates their "Overweight" rating on Apple.
Barclays' analysts are raising estimates to include iPad and related revenues, partially offset by some cannibalization of other devices. The firm estimates that Apple will ship 2.9 million devices in FY10 and 7.3 million in FY11.
Barclays estimates fiscal Q2 EPS of $2.32 (up from $2.29) on 29% year-over-year revenue growth to $11.74B (from $11.6B). For FY10, the firms now estimates EPS of $12.00 (from $11.60) on 31% YOY revenue growth to $56.1B (up from $54.5B). For FY11 Barclays estimates EPS of $13.75 (from $12.75) on 15% YOY revenue growth to $64.5B (up from $60.2B).
Given higher estimates, Barclays Capital's new price target for Apple Inc. (AAPL) is $285 based on 17x their new FY11 EPS estimate of $13.75 excluding interest income ($0.15) while adding $51 forward 12-month cash.
