RBC revises Apple stock price target to $525 in anticipation of iPhone frenzy results

RBC revises Apple stock price target to $525 in anticipation of iPhone frenzy results
Investment bank RBC joins other analysts that have upped their predictions for a record quarter for Apple and now places its target for Apple stock at $525, up from $500. RBC expects Apple to report results beating expectations on Wall Street and still give a positive outlook for the first quarter of 2012 (Apple’s second fiscal quarter).

RBC analyst Mike Abramsky wrote the note "iPhone Frenzy: Expecting Strong Q1 Results" to investors saying that the bank expects Apple to report $40.2 billion in revenue and $11 earnings per share. The previous estimate said revenue is to be $38.6 billion with EPS at $10.

The biggest reason for the more optimistic forecast is iPhone sales, which have been outstanding. Apple has sold out of iPhones in many places and there was "unprecedented iPhone sell-through."

His next quarter guidance is also better than the average Wall Street projections - Abramsky forecasts $32 billion in revenue and $8 EPS, while analysts agree on $31.8 billion and $7.94. RBC projects iPad sales for the Holiday quarter at 13 million.

source: AppleInsider


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11 Comments

1. iKingTrust

Posts: 716; Member since: Jul 27, 2011

Doubt it jumps that high.

8. ardent1

Posts: 2000; Member since: Apr 16, 2011

Keep in mind if AAPL has about $80 billion in surplus cash, that's worth about $86 a share. $525 minus $86 is really $439 for Apple's operations. And $439 net price divided by the prospetive $38.50 gives an implied forward P/E of just 11.4x, which is a bargain in today's markets. Btw, the $38.50 divided by the net $439 price results in an earnings yield of about 8.7%

2. thelegend6657 unregistered

The Maxis store in petronas twin towes (used to be the worlds tallest building is crowded like crazy . Maxis is the best carrier here they subsides a wide range of phones including a lot of android ones but everyone is there for the iPhone as far as I know . Looks like the 4s is still in short supply here in Malaysia

3. remixfa

Posts: 14605; Member since: Dec 19, 2008

this just feeds into what i said before, where they constantly up the ante on what they think the stock will be, which will convince more people to buy the stock.. which of course raises the stock further.... which makes them more money. its legalized insider trading.

4. arcq12

Posts: 733; Member since: Oct 13, 2011

another marketing strategy..

6. ivanko34

Posts: 617; Member since: Sep 04, 2011

The aim of apple is not to make new great phones but it is to make the maximum money

7. andro.

Posts: 1999; Member since: Sep 16, 2011

Iphone frenzy were ifans throw eggs and riot if they don't get their iphone fix!

9. thelegend6657 unregistered

I waited two weeks for this iPad 2 bought a month after launch where all retailers are all out of stock with people actually wanted to pay more than 500ringgit to get their hands on one . I was wondering , Malaysian economy wasn't the best in Malaysia , where do they get their money ?

10. thelegend6657 unregistered

I waited two weeks for this iPad 2 bought a month after launch where all retailers are all out of stock with people actually wanted to pay more than 500ringgit to get their hands on one . I was wondering , Malaysian economy wasn't the best in Asia , where do they get their money ?

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

wow, i see we are being over modded again. kinda funny that it was all on the day that the internet was fighting SOPA over regulation of the internet.

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