Here’s Why This Analyst Raised the Price Target on Apple
Will Apple’s (NASDAQ:AAPL) September quarter surpass most analysts’ expectations? Mizuho Securities analyst Abhey Lamba recently raised his price target on Apple stock from $520 to $550 due to higher-than-expected iPhone shipments in the final quarter of fiscal year 2013, reports Benzinga.
“We expect the company’s outlook to indicate significant acceleration in iPhones, which would imply sequential improvement in margins,” wrote Lamba via Benzinga. Based on this expectation, Lamba estimated that Apple’s fourth quarter fiscal year 2013 revenues will be in the $37 to $38 billion range, which is higher than the consensus estimate of $36.8 billion. The analyst also estimated a September quarter EPS range of $8.05 to $8.25, which is higher than the consensus estimate of $7.89.
Lamba also noted the positive affect of Apple’s recently revised earnings guidance. “Given management’s recent commentary and our expectations that revenue outperformance will be led by iPhones, we expect gross margin to end up slightly above the high end of management’s outlook of 36-37 percent,” wrote the analyst.