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macrumors G4
Original poster
Feb 5, 2009

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.


macrumors Penryn
Mar 23, 2005
This isn't the Apple you are looking for.

An interesting change in pricing but it's a hard sell for this first generation product. Do we have a direction yet?


macrumors 68040
Aug 7, 2005
Up the irons
Apple cut the iPhone's price several months after its initial release. It wouldn't surprise me to see Apple do the same with their low-end iPad.


macrumors 68020
Jun 7, 2007
So how much money does Barclays have in invested in Apple? 37+ Million.

No wonder why they keep upping the price target every quarter. :rolleyes:
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