Ticonderoga Maintains a 'Buy' on Apple (AAPL); More News Flow Momentum for Apple This Week and Beyond
10:24 am ET 02/07/2011 - StreetInsider
Ticonderoga maintains a 'Buy' on Apple (NASDAQ: AAPL), PT $550. Ticonderoga analyst says, "We believe Apple's stock is poised to make new highs this week on the back of extended positive news flow surrounding the launch of the iPhone 4 at Verizon (NYSE: VZ)(NR) that will be officially available in stores on Thursday (February 10). Additionally, we believe Verizon customers will have a second opportunity to pre-order the iPhone 4 this Wednesday (February 9). We believe Apple's positive fundamental momentum is not yet reflected in the stock price at just 11.6x (ex-cash) our CY11 pro forma EPS estimate." "Is the Mysterious "White" iPhone 4 on the Way? There have been several articles over the past few weeks speculating that Apple will finally introduce a "white" iPhone 4 that has been delayed. Over the weekend, tech website Engadget published photos of a "white" iPhone 4 shelf tag at Best BUY (NYSE: BBY)(NR) in Houston. In our view, there is a certain demographic that will be interested in the "white" iPhone 4, and this could lead to incremental demand for the iPhone 4, in our view, as consumers will be better able to justify another upgrade." "Momentum to Continue iPad 2, New MacBook Pro and CDMA Deals. Looking into February and March, we believe Apple will soon need to announce the iPad 2 before a potential April launch, while discussing an upgraded MacBook Pro line. Given the plethora of tablets coming to market and the Motorola Mobility (MMI, $31.34, NR) Xoom poised for a February launch, we believe Apple will do well to make an announcement in the coming weeks. Finally, we believe the iPhone 4 on the Verizon CDMA network is only the beginning of more CDMA announcements, and China Telecom (NYSE: CHA)(NR) represents a strong candidate. Keep in mind, CDMA subscribers around the world are estimated at 550 million (2Q10) by the CDMA Development Group, with approximately 57% in Asia." For more ratings news on Apple click here and for the rating history of Apple click here. Shares of Apple closed at $346.50 yesterday, with a 52 week range of $190.85-$348.60. |
