Apple (NASDAQ: AAPL) was up yesterday, but so was almost everything else. The company is getting special attention from investors because Credit Suisse upgraded its view of the firm's prospects for the second quarter.
Apparently, demand for iPhones and Macs is better than expected.
According to the Associated Press, "In a client note, Credit Suisse analyst Bill Shope increased his target price to $133 from $120." What is not clear is whether the potential improvement in Apple's business is due to an overall upturn in PC and smartphone purchases or if the better results are restricted to Apple.
Based on recent research, both global PCs and smart phone sales are being undermined by the recession. Most analysts do not expect this to improve until late this year or early 2010.
Any improvement in Apple's fortunes is already priced into the shares. In other words, the stock has run further than those of its competitors. Over the last three months, Apple has risen 40% compared to 2% for Dell (NASDAQ: DELL) and a loss of 5% for HP (NASDAQ: HPQ). Even if Q2 is going to be particularly strong, Apple is overpriced
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
4-10-2009 @ 7:25PM
Beltway Greg said...
Dougalicious, on April 21, 2006 you wrote that Apple shares would have trouble staying above $70.00. And as they say the rest is Stevestory. Of course, Apple reached
$203.00 and stayed above $170 before the Keynsian depression and just about ended the markets as we know. Check that, with the government intervention the markets are profoundly altered. If you're down on Apple you're on down on the markets in general. Basically, if you're messin' with Dre you're messin' with Easy. (All apologies to NWA.) If the market continues to improve Apple will outperform the market and exceed $200 in 12-15 months. Apple is like a werewolf. You're going to have to put a silver bullet through its heart to stop it. If the financial disaster had been more effectively managed i.e., Lehman had been put on some type of life support and unwound while saving the drama for your momma Apple would've based and topped out around $240-260 after Xmas. As things transpired it still had a stellar year. Anyway, the Apple store was packed today in the Big Apple and with Xmas just two weeks away....oops, I guess people just love the products. Watch what happens when the dollar drops later this year. Hint, improving margins. Apple will see $200 long before Google sees $700. 5K says I'm correct.
4-13-2009 @ 11:00AM
Beltway Greg said...
Kaufman starts Apple @ $152.00. Get on board cause the train is going uptown.