Analyst: Positive iPad Survey Sparks This Apple Stock Rating
Apple (NASDAQ:AAPL) shares are near its 52-week low of $419, but based on positive trends from an iPad survey that his firm commissioned, Matthew Hoffman of Cowen & Co. stands by his Outperform rating on the stock reports Barron’s. Apple closed at $423.20 on Friday after shedding $4.52, or 1.06 percent, from its price at the opening bell.
Hoffman predicts that Apple’s quarterly results will see improvement because of increased iPad shipments. Hoffman has forecast $40.6 billion in revenue for the quarter ending in June and earnings per share of $10.03.
Currently there is a consensus prediction for $39.38 billion in revenue for June and EPS of only $9.28. Sales of iPads are expected to reach 21.7 million and sales of iPhones are expected to hit 31 million units, according to Hoffman via Barron’s. According to Apple’s website, Apple sold 17 million iPads and 26 million iPhones in FY 2012 Q3, which saw $35 billion in revenue.
As quoted in Barron’s, Hoffman sees a definite upside in tablet shipments, stating “Given the U.S. penetration rate for tablets lags substantially the penetration rates of traditional PCs (>90 percent) or mobile phones (>100 percent) and the tablet category itself is still in its infancy (the iPad itself is just three years old!), we continue to see ample room for Apple to grow its iPad franchise through the continued displacement of traditional PC use cases and increasing iPad household penetration.”