Analyst: Apple’s Price Target Boosted Along With iPhone 5S Production

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Source: Apple.comSusquehanna Financial Group analyst Christopher Caso has raised his Apple (NASDAQ:AAPL) price target from $625 to $650 and reiterated a “Positive” rating based on good results from his manufacturing and supply chain checks. In a note to investors obtained by Barron’s, Caso wrote that Apple will likely get a revenue and margin boost from a “significant production shift from iPhone 5C to 5S.” Although Caso’s total iPhone unit sales estimate for the December quarter remains the same, the production shift would “imply a much stronger mix than originally anticipated.”

“Following our most recent checks, we believe December iPhone builds are running in the 52-54 mln range, essentially in-line with our October 8 checks but better than our read in early December,” wrote Caso in a note via Barron’s. “Our checks indicate the mix has indeed shifted disproportionately to iPhone 5S, with production of 5S running nearly 4x that of 5C.”

The Susquehanna analyst estimated that approximately 10 million units worth of iPhone 5C production have been shifted to the iPhone 5S. Overall, Caso estimated that Apple would produce about 36 million iPhone 5S units, 10 million iPhone 5C units, and 7 million iPhone 4/4S units in the December quarter. The analyst also noted that, “There wasn’t a fall off in demand for iPhone 5S after the initial strength of the launch.”

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