More: Apple (AAPL) Estimates Raised,
Price Target Hiked to $650 at Jeffereis Following Latest Survey
December 16, 2013 6:49 AM EST
Jefferies analyst Peter Misek raised estimates and his price target on Buy-rated Apple (NASDAQ: AAPL)
from $600 to $650 following their quarterly smartphone, tablet and PC survey.
Misek sees solid calendar fourth quarter (CQ4) results and raised calendar Q1 (CQ1) builds due to China
Mobile.
For CQ4, Misek comments: "... our survey results were solid for AAPL with stable trends vs. CQ3. Our
proprietary Apple Supplier Tracker, based on Taiwanese companies with >40% rev exposure to Apple,
was +12% M/M and +8% Y/Y in Nov vs. +9% in Oct. Suppliers with more 5s exposure (e.g., Hon Hai)
fared better than those with more 5c exposure (e.g., Pegatron). We maintain our CQ4 55M iPhone
and 25M iPad estimates (both roughly inline with St)."
On CQ1, he said: ... "our checks indicate that iPhone CQ1 build plans have been raised from
40-45M to 45-48M. The 3-5M increase is due to China Mobile (ex CM build range trimmed by 1M
for the non-TD PAs and filters). We tweak up our unit estimate from 41M to 42M and revs/EPS
from $45.0B/$10.94 to $45.6B/$11.22."
Misek also said checks indicate Apple is trying to pull forward the launch of the iPhone 6 from around
September to July/August. "While we agree that Apple needs a >4" phone to plug the whole in its product
lineup, we are unsure if Apple will be able to pull forward the timing," he states. "Our checks indicate that
the iWatch is still on track for H1:CY14 and that the 13" iPad and/or hybrid tablet notebook is coming in
the June time frame.
Overall, we raise our estimates further above St from $208B/$52.24 to $209B/$52.85
(St $195B/$47.47) and raise our target from $600 to $650."
Note: If Misek's $52.85 came into being, then AAPL is worth at least $52.85 x 15 = $792.75 :-)
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