JP Morgan’s Mark Moskowitz this morning reiterates an Overweight rating on shares of Apple (AAPL) and a $525 price target after lifting his estimates on iPhone sales while also cutting his iPad estimates for this quarter.
There are “no signs of a plateau effect in end demand” for the iPhone, writes Moskowitz, with the company shipping perhaps 28 million units this quarter, up from his prior 25.3 million-unit forecast. He also raised his full-year iPhone estimate by 4.2 million units to 105.5 million, and raised his 2013 number by 1.5 million to 121.7 million.
The iPad may sell 13 million units this quarter, less than the original 13.3 million Moskowitz expected. He thinks there’s “no structural change to the iPad demand environment,” but he observes that “there has been limited uplift in build activity.” And, “To a lesser extent, the Amazon (AMZN) Kindle Fire�s better-than-expected momentum with more price sensitive consumers is a factor, too.”
Moskowitz now models Apple making $38.69 billion in revenue and $9.87 a share in profit this quarter, up from $37.26 billion and $9.45 previously.
Apple shares this morning are up $1.18, or 0.3%, at $383.52.
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