Do you think Apple’s stock value will rally even higher? Goldman Sachs analyst Bill Shope sure thinks so. He raised his target price on Apple shares to $550 from $530.
“We expect several key catalysts to drive the stock price and the multiple higher this year,” writes Shope. “iPhone momentum should continue into 2012 as Apple expands its distribution footprint in the March quarter, enjoys improved elasticity with the low-priced iPhone 3GS, and refreshes the product family once again mid-year.”
Furthermore, he expects a lower price point for the iPad 2 “and the launch of the iPad 3 to trigger accelerating momentum in the June quarter and beyond.”
Shope estimates Apple’s fourth quarter earnings will be greater than most anticipate. To start, he estimates Apple sold 31 million iPhones in the holiday quarter – slightly above the consensus estimates of 30.2.
Similarly, Business Insider reports, “He thinks revenue comes in at $38.18 billion versus a previous estimate of $37.06 billion.” He also expects EPS will be $9.94 instead of the estimated $9.44.
Apple has already had extraordinary growth in 2011. New optimism caused share prices to rally on Monday but closed the day at $421.73, down 0.16%.
Business Section: Investing Ideas
Do you think Shope is correct about Apple’s fourth-quarter earnings?
To help you follow the trend, use Kapitall’s Turbo Chart to compare the stock performance of Apple against the S&P 500 index:
*Written by Rebecca Lipman