RBC ups its target for Apple stock to $425 following huge quarter

By on Jan 19, 2011 at 12:17 PM
Business January 19, 2011

Just one week ago, RBC Capital Markets Managing Director Mike Abramsky sent a price target revision to investors upping the firm’s target for Apple stock from $365 to $395. Following Apple’s monster quarter, RBC issued a new revision β€” this time raising its target to $425. Apple’s conservative second-quarter guidance of $22 billion still beat the Street’s $21 billion, and Abramsky points out that Mac shipments grew faster than Windows PC shipments for the 19th consecutive quarter. The firm now expects Apple’s 2011 fiscal year revenue to come in at $99 billion, up from its earlier estimate of $90.8 billion, and FY12 revenue estimates have been upped from $103.3 billion to $108 billion. Abramsky also notes that while Jobs’ medical leave may have a near-term impact on Apple’s stock, the company’s huge momentum remains intact.

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  • serpentor

    What time frame is RBC thinking of? If it’s for the year I think that’s pretty tame. I think $425 by next quarter. $500 in a year. Mark my words.

    • Eric

      I imagine they would do a stock split before it hit $500.

      With the Verizon iPhone coming out next month, iPad v2 on the horizon, and probably an iPhone 5 in June (no way is annual going to pass on their annual cash cow refresh), Apple is well positioned for the next year.

      • http://twitter.com/gingerjet tim shea

        Apple used to do stock splits more aggressively. The last time they did so was in 2005. That was also the last time Apple payed a dividend. I believe they’ve fundamentally changed their way of dealing with their stock price and they will not do a stock split or pay out a dividend.

  • Anonymous

    Anyone know if the Verizon iPhone 4 is going to have simultaneous voice and data or, at least, Facetime via 3G?

    Gracias!

    • StevenGlansburg

      CDMA can’t do voice and data at the same time and the Verizon iphone 4 is cdma. I’m not sure how Verizon customers will be able to live without it considering its essential all day, every day and they are so used to it….oh wait they aren’t nor care.

    • http://twitter.com/Davva360 David Moore

      If you want a facetime experience over 3G you can use Skype or Fring. I am surprised that Apple / AT&T allowed these apps without unlocking Facetime over 3G.

  • Anonymous

    I don’t understand the $99 Billion earnings for 2011 and then only $108 Billion for 2012. He is suggesting a 9% increase YOY?

    They are on pace to have sales of $110 Billion this year if you average things out with the last couple of years. So 2012 earnings would be $170 Billion at least.

    The growth in the last ten years is stunning and if they keep this pace up their earnings will be $500 Billion for FY 2015!

    That is insane!

    That is insane

  • Phed_Up

    There is a lot of supposition that other vendors (Android, Blackberry, etc.) are going to get ZERO traction in the tablet market, as well as supposition that even though there is now a CDMA iPhone that Android won’t continue to dominate, and RIM will be a complete failure in future handsets.

    With respect to the tablet market especially, history shows without question that price is king, and unless Apple wants to play in the sub $300 range, they are going to get buried by “almost good” tablets as will any other vendor that tries to maintain a $600 plus pricepoint for a tablet.

    Concerning the actual MAC sales….seriously? Growth year over year outpaced PC’s. But at what percentage of actual overall sales? Remember, going from 1% to 2% is a 100% increase, but it is still almost nothing!

    Their success is not arguable, but I think a lot of analysts have set them up for a monstrous fall. There simply are too many viable competitors that simply have better overall market availability than Apple. The perfect storm of “no tablet competition” has dried up….

    Well wishes to SJ though, and shame on Wall Street for tying his health to share prices! That was a crappy move if I ever saw one!

    • Anonymous

      Android is going to grow, RIM is going to grow. These two companies growing have zero impact on Apple. These past two years have proved it and the next few years will continue to prove it.

      Apple has out grown the PC industry for 19 straight quarters. Their ASP’s for Macs are around $1,200. The company has never been concerned with market share. If they have a high market share great, if they don’t it doesn’t matter.

      Apple has just 4% of the overall cell phone market and 9% of the PC market. The growth potential for those two areas are huge for Apple. Now, factor in that $59.7 Billion in cash and Apple is literally unstoppable.

      Again, other platforms will grow but so will Apple.

  • http://twitter.com/saltorio Shawn S. Altorio

    I really don’t understand why earnings estimates are even news, beyond Apple fanboyism.

  • http://twitter.com/D4mi4n1988 Damian Wozniak

    The only thing that might be a small hicup is Steve’s health…

  • Anonymous

    In order for Apple to maintain the pace they’re at, they need to seek new markets, keep pace with competition on upgrades on their current product, innovate and introduce new products without this their sales will eventually taper off, and the only person who can execute this is on their disable list right now.

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