Analysts bullish on Apple
Apple is scheduled to release their quarterly earning statements early next week. Market analysts are reviewing their crib sheets and renewing their estimates, which are mainly on the bullish side.
Both J.P. Morgan and Morgan Stanley have adjusted their price, earnings, and sales estimates upwards, though the reasoning is not exactly the same for both brokers. The market has been complicated by a number of factors in recent months, from the general decline in PC sales to the release of the new Palm Pre. After taking all factors into account, the general picture for Apple is seen as being primarily rosy.
J.P. Morgan raised their price target by almost eight percent and hiked their earnings estimate by almost the same factor. They are now seeing an almost 12 percent growth rate on the iPhone side of the house and 17 percent on the personal computer side, according to CNN Money. Those are positive numbers, indeed.
Mark Moscowitz, J.P. Morgan’s Apple team leader, said, “œWe expect a strong showing from Apple in the June quarter.” He also said that Apple’s overall business volumes should exceed investors’ expectations and news from primary brokerage research contacts indicate a Mac notebook surge in the second half of the June quarter, which is good news all the way around. He also looked at the rise in the components in the iPhone supply chain as being an important factor.
Morgan Stanley was even more optimistic. They raised the target on iPhone sales by 43 percent and the third quarter revenue estimate all the way up to $8.3 billion, another healthy boost. Kathryn Huberty, who leads the Apple team at Morgan Stanley noted that the early launch of the iPhone 3GS and the “œresulting pull forward of demand,” plus current supply chain information that shows iPhone build rates being higher than expected all contributed to her more positive reading of the cards in Apple’s immediate future.
Apple continues to perform despite the world economic woes and the dampening effect that has had on both the cell phone and personal computer marketplaces. The Cupertino electronics giant continues to impress most analysts, based purely on measurable performance across product lines and in defiance of global economic conditions. With Steve Jobs apparently back at the helm, the financial community is currently very happy indeed with Apple.
