Jaffray Sets Apple’s Target Price At $250
11.19.07 - 03:30pm
Piper Jaffray has just added Apple to his Alpha List of stocks. The Jaffray Alpha list, is a list of stocks whose shares hold extreme potential for significant near-term appreciation due to particular market conditions and catalysts.
The market condition for Apple is of course the upcoming holiday season. Noted by Jaffray is that for the last four years Apple’s stock has increased by an average of 42.5 percent between Oct. 1 and Dec. 1st. “We believe there is potential for similar gains this year for several reasons,” he wrote. “In recent years Apple has announced new or updated iPods in the fall, and this year is no exception. We believe the new iPod touch, iPod classic, and iPod nanos give Apple its strongest product line-up for the holidays in company history.”
Along with the holiday season to spark the ever growing furor for the hot new iPods, Apple has other catalysts that are liable to propel their stock forward. One of those is the iPhone which was only just released in parts of Europe. The other is the great selling Macs which have jumped up 50% in sales since the inception of the iPhone. This is partially due to the great iPhone hype resulting in greater Mac talk as well.
Then you have MacWorld. While the Apple event isn’t until January, talk of the event and speculation of what to come always seems to propel Apple’s stock ever forward. Each year the company announces new products in early January and throughout the month leading up to the event, speculation regarding future products has caused the stock to increase,” Jaffray advised clients. “The Macworld factor has, in part, led to an increase in the share price of 37 percent on average throughout the December quarter.”
Jaffray is currently setting Apples stock at a “buy” with a target price of $250.00. Currently Apple’s stock is at $163.15.
Speak Your Peace