This Analyst Has High Hopes for Apple
Credit Suisse is choosing to be ultra bullish on Apple (NASDAQ:AAPL) ahead of the iPhone maker’s December quarter earnings report in the coming week. According to analyst Kulbinder Garcha, the Wall Street consensus estimates for the company, especially the reduced earnings per share figure, are too pessimistic.
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Garcha is modeling $57.2 billion in revenue and $14.59 per share in earnings per share. According to Wall Street averages calculated by FactSet, Apple will post earnings of $13.45 a share, down from $13.87 a year ago. Revenue is expected to rise to $54.92 billion from $46.33 billion in the year-earlier period.
The analyst, who reiterates an Outperform rating on the shares along with a $750 price target, also predicts an average gross margin of 39.3 percent on 49.8 million iPhone units and 23.8 million iPad units, Barron’s said. According to Garcha, despite the introduction of several rival tablet devices from Apple’s competitors last year, the iPad would continue to maintain a majority share of the market for a while to come.