A couple of Wall Street analysts recently released research notes saying that Apple is poised to move higher, particularly as the holiday shopping season continues in full force. The iPhone 5, iPad and iPad mini are seeing healthy demand and supply is improving, particularly for the iPhone 5, noted Sterne Agee's Shaw Wu. He rated Apple a buy with an $840 price target.
"From our latest supplier checks, we continue to pick up improving yields and availability on iPhone 5 and thus improving profitability," Wu penned in a research report. "In addition, we have noticed much better availability in AAPL's retail stores, online store, as well as third-party partners," he said later. He now believes Apple could sell more than the 45 million to 46 million iPhones this quarter, particularly as Apple enters China. Wu raised his iPhone unit forecast from 46.5 million this quarter to 47.3 million.
A look at Apple's Web site confirms this, as ship times have improved from two to three weeks in mid-November to just two to four business days for all models and all carriers. On the other hand, demand for the iPad mini is still outstripping supply. A look at Apple's site shows that ship times for the smaller iPad are at two weeks.Apple iPad Mini: First Impressions Apple recently announced that the iPhone 5 would be coming to China Dec. 14 and the new iPad and iPad mini would be coming Dec. 7. UBS analyst Steven Milunovich said he believes Apple is poised to move higher as earnings growth moves the stock higher, helped by new products and increased gross margins. "Although we don't expect much multiple expansion, new products still have the potential to drive earnings growth and create value by earning cost of capital," Milunovich wrote in a research note. He rated Apple buy with a $780 price target.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV