Apple stock (AAPL) has seen its most significant growth this month following JPMorgan Chase & Co.’s lifted profit estimates for 2009 and 2010 attributed to accelerating notebook sales.
Bloomberg reports that San Francisco-based JPMorgan analyst, Mark Moskowitz, has noted that Apple’s opportunity to increase their notebook market share is something that “warrants increased attention.” He then went on to add, “Our conversations with industry contacts suggest that Mac notebook momentum has been increasing, whereas desktop could be bumpy.” Similar sentiments were felt by Oppenheimer & Co. analyst Yair Reiner, who revealed to investors that “Even with the consumer battling hypothermia of the wallet and soul, we believe the fundamental attraction of the Mac — its aesthetic appeal, usability, and integrated multimedia applications — will continue to peel users away from the Windows mold.”
Moskowitz is now projecting that the Cupertino-based company will earn $4.86 a share and $5.34 a share in the fiscal years ending in September of 2009 and 2010 respectively. This is up from his previous estimates of $4.53 and $4.83.
In Apple’s current condition, numerous analysts are urging clients to buy. Standard & Poor’s, Thomas Smith, has made a buy recommendation noting that “We also believe present valuation levels are attractive for the pace of earnings-per-share growth we anticipate.” Smith describes Apple’s wares as “simple, superior, and differentiated products,” a fitting description that not many can disagree with. Smith does, however, go on to add that because of the economy’s downturn, the demand for consumer electronics will soften.
Barclays Capital (BCS) analyst, Ben Reitzes, has also advised clients to buy, revealing that “Apple’s valuation is compelling, given its cash of $27 a share and prospects for $10 a share in free cash flow in fiscal 2010.”
While all of these analyst’s estimates appear on the positive side, non of them come close to investment bank Needham analyst, Charles Wolf’s strong buy rating who has placed a herculean 12 month price target of $240! While that may be shooting for the stars, he is basing his estimates on Apple’s Q4 results, namely the success of the iPhone.
While Apple stock has fallen nearly 55 percent in 2008, shares of the company are currently trading at $89.53, up nearly $7.00 (8.40%).
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