NEW YORK (TheStreet) –– As the holiday shopping season moves along, Apple (AAPL) continues to get love from Wall Street with JMP Securities the latest firm to boost its price target on the stock of the world's largest company. It's the fourth such price target boost in the past few days.
Analyst Alex Gauna boosted his price target to $150, keeping his "market outperform" rating following retail and online checks that revealed "powerful demand" for Apple products during the holiday shopping season.
"Even as the supply of iOS devices gradually improves and online ordering lead times have eased, Apple is continuing to sell out and/or seeing extended lead times for its highest-end iPhone and iPad offerings in the U.S. and China and we see this translating into positive implications for December quarter unit volumes, ASPs, and gross margins," Gauna wrote in a note. "We are also witnessing a lack of competitive momentum from key Android rivals that we believe should translate into further share gains for Apple in the December quarter, better entrenchment of the business model, and a wide-open opportunity for Apple to transform the wearables and mobile payment markets in 2015."
Guana now expects Apple to generate earnings of $2.62 a share in the quarter on sales of $67 billion. The estimate is based on sales 67 million iPhones, 25 million iPads and 5.5 million Macs. Analysts surveyed by Thomson Reuters expect Apple to earn $2.53 a share in its fiscal first quarter on $66.35 billion in revenue. When Apple reported fiscal fourth-quarter results, the tech giant said it expects to generate between $63.5 billion and $66.5 billion in revenue, with gross margins between 37.5% and 38.5%.