Analysts Still Raising Apple’s Target Price
06.07.07 - 12:29pm
“We believe Apple can sell 45 million iPhones in calendar year 2009,” said analysts from Piper. “While this may seem like a bold prediction, we believe a number in this area is not as far of a reach as some may think.”
And with these bold words Apple’s stock is on the rise again reaching an all time high of 127.61 so far today.
Senior analysts Gene Munster and Michael Olsen back their 45 million iPhone expectations saying that Apple will seize a 7 percent market share in North America and a 2.8 percent market share in the rest of the globe.
“We assume Street pricing on iPhone will have dropped to $338 by calendar year 2009 from $542 in calendar year 2007. Additionally, it is critical to keep in mind that the iPhone will be a combo device (iPod and mobile handset), which will attract more than just a mobile phone customer,” said the analysts. “We believe we have factored cannibalization of iPod from iPhone into our model by lowering iPod growth rates from 35 percent or more year-over-year growth in fiscal year 2007 (and prior years) to 10-15 percent year-over-year in fiscal year 2008 and fiscal year 2009.”
Munster backed up his beliefs by raising his target price on Apple’s stock from $140 to $160.
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