Kaufman Boosts PT and Estimates for Apple, Expects "Blowout" Q1 (AAPL)
12/30/2009-Kaufman increased its price target for shares of Apple (NASDAQ:AAPL) to $253 from $235, citing expectations for a "blowout" first quarter, despite continued difficulties in the consumer sector.
Wu upped his EPS estimate for Apple's fiscal first quarter to $2.15 from $1.99 (vs. consensus estimates of $2.04), as well as his revenue forecast to $12.43 billion from $11.66 billion (vs. consensus estimates of $11.94 billion).
For the September 2010 fiscal year, he raised his sales and EPS forecast to $44.39 billion and $7.40 a share, from $41.74 billion and $6.80.
Analysts, on average, were projecting full-year 2010 EPS of $7.79 on sales of $44.81 billion.
Kaufman analyst Shaw Wu said Apple may ship up to 9.5 million iPhones, besting its prior quarterly record of 7.4 million.
Wu also said he expects Apple to report shipments of 2.9 million Macs and 22 million iPods.
"Despite continued difficult macroeconomic conditions and ever rising investor expectations, we anticipate Apple could still post material upside to recently raised consensus estimates, not to mention its conservative guidance, driven by strength in all three major product lines, particularly its iPhone business," he wrote.
by Chip Brian