An apple a day…
Canaccord Genuity Technology Analyst Michael Walkley raised his target price for Apple on the back of his August channel checks which indicated strong sell-through trends for both the iPhone and iPad. His checks showed that the iPhone 4 remained the top selling smartphone at AT&T (T) and Verizon (VZ) despite consumer speculation regarding the upcoming iPhone 5 launch. Further, he believes Sprint (S) will receive the new iPhone at launch and heavily promote it given the carrier’s unlimited data plan.
Based on his checks indicating healthy global sell-through trends combined with his belief that Apple remains on track to ship its new iPhone in large volume during the December quarter, he has increased his 2011 iPhone sales estimate from 80 million to 83 million units and his 2012 estimate from 105 million to 107 million units. Further, with his checks indicating strong global sales for the iPad, he has increased his 2012 iPad estimate from 56 million to 59 million units. As a result, he is raising his 2011 EPS estimate from $26.37 to $27.29 and his 2012 estimate from $30.29 to $32.13.
Based on solid demand trends for the iPhone and iPad, poor sell-through trends for competing tablet offerings and the ramping iOS ecosystem driving longer-term replacement sales, Walkley is bullish on the stock, believing Apple will maintain dominant value share of both the tablet and smartphone markets to drive healthy long-term earnings growth.
Apple (AAPL : NASDAQ : US$379.74), Net Change: 5.69, % Change: 1.52%, Volume: 18,088,521
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