Apple’s Target Stock Price Raised Again
06.05.07 - 04:17pm
From $120 to now $140, analyst Robert Semple of Credit Suisse, has raised his target price on Apple’s stock causing another Apple all-time stock high today.
Shares of the company rose to a peak of $122.68 on the news that Semple estimates that 5 million iPhones will be sold this year and 15 million will be sold in 2008 amounting to a cool $2.2 billion in revenue.
“We believe the Mac operating system is the great differentiator in the iPhone, establishing an entirely new set of features and capabilities unavailable to current mobile phone customers today owing to the poor quality of existing operating systems,” he said.
He also said that he believes that Apple is hitting a developing trend - the trend that involves the notion of “trading up”, or paying a steep premium for a luxury item.
“Consumers have become accustomed to getting more and paying less,” he said. “However, when peeling back the onion, there is a developing trend with middle-market consumers which plays right into the hands of Apple’s iPhone. That trend involves the notion of ‘trading up.’
He expects that young single twenty-something professionals, dual income couples with lots of disposable income, divorced women and empty nesters will be willing to pay for the iPhones $500 to $600 price tag.
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