• Sprott Money
    04/29/2016 - 05:58
    There is unfortunately no basis for renewed optimism that this current litigation will have any meaningful impact on precious metals manipulation – with respect to either silver or gold.

Goldman Hikes Apple Price Target From $660 To $700

Tyler Durden's picture




 

The muppets must buy. Tangentially, one wonders if it was Goldman's advice that a now post-Jobs AAPL followed to do what the banks did post "Stress test"... or if it was JP Morgan's. One can also hope this report from Boy Genius on the NEW iPad occassionally overheating has nothing to do with anything.

From Goldman

A major catalyst fulfilled, many more to come

 

What's changed

 

This morning Apple announced a $2.65 per share quarterly dividend and $10 billion share buyback authorization. Through these programs, the company estimates it will return approximately $45 billion of cash to shareholders over the next three years. While the dividend was essentially in line with expectations, we view the share buyback authorization as an incremental positive. In addition, on the conference call this morning, we believe Apple’s management appeared very willing to consider steady increases in the dividend and share repurchase rate over time. We believe that today’s announcement, coupled with additional positive catalysts that we expect through the year, should continue to lift the stock higher. We reiterate our CL-Buy and raise our 12-month price target to $700 from $660.

 

Implications

 

We are modestly raising our earnings estimates to account for the lower share count resulting from the share repurchase program. Our EPS estimate of $42.52 in FY2012 is unchanged, but we modestly raise our forecast for FY2013 and FY2014 to $50.57 and $57.90 from $50.29 and $57.14 previously.

 

Valuation

 

We are increasing our target price to reflect the company’s more attractive capital allocation strategy. Our new 12-month price target of $700 is based on a multiple of 16X on our CY2012 EPS estimate of $43.86. This compares with our prior 12-month price target of $660, which was based on a 15X multiple on our prior CY2012 EPS estimate of $43.82.

 

Key risks

 

Key risks include worsening macro conditions, supply chain disruptions, increased platform competition, and potential legal and regulatory restrictions.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 03/19/2012 - 14:34 | 2270440 rebelscum1967
rebelscum1967's picture

Now can I short it?

Mon, 03/19/2012 - 14:37 | 2270450 Unprepared
Unprepared's picture

This gonna end badly

Mon, 03/19/2012 - 14:42 | 2270475 iDealMeat
iDealMeat's picture

iRan  should go bomb foxconn..

Mon, 03/19/2012 - 14:44 | 2270481 Pladizow
Pladizow's picture

Dont pigs like apples?

Mon, 03/19/2012 - 14:49 | 2270503 TheFourthStooge-ing
TheFourthStooge-ing's picture

They sure do! Break out the barbeque sauce!

 

Mon, 03/19/2012 - 14:59 | 2270533 Stanwick
Stanwick's picture

BUY! BUY! BUY! MUPPETS!!

Mon, 03/19/2012 - 15:34 | 2270674 Gidas19
Gidas19's picture

yes, BUY BUY BUY Bank of America!!! Price target is way above 11$...

 

G.S.

Mon, 03/19/2012 - 14:45 | 2270486 SilverIsKing
SilverIsKing's picture

Apples are not overpriced.  They are on sale!!!  BUY BUY BUY!!!

http://stopandshop.shoplocal.com/stopandshop/default.aspx?action=detail&...

Mon, 03/19/2012 - 14:46 | 2270490 SilverIsKing
SilverIsKing's picture

Oh

Mon, 03/19/2012 - 16:05 | 2270801 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Distribution!

Mon, 03/19/2012 - 14:35 | 2270441 firstdivision
firstdivision's picture

PLEASE BUY WHAT WE WNAT TO SELL!

Mon, 03/19/2012 - 14:35 | 2270446 slaughterer
slaughterer's picture

If Goldman says buy, muppets must sell.  Or is it the other way around now that the inverse reaction thesis to GS recs has been overexposed recently?

Mon, 03/19/2012 - 14:47 | 2270495 TheFourthStooge-ing
TheFourthStooge-ing's picture

It's as clear as mud.

Cramer: "Apple is looking like a strong buy here!"

Cramer hits wrong button on retarded sound effects control: "SELL SELL SELL!!!"

 

Mon, 03/19/2012 - 15:09 | 2270449 Normalcy Bias
Normalcy Bias's picture

Govt Sachs wants to unload some AAPL, eh?

Mon, 03/19/2012 - 14:38 | 2270458 monopoly
monopoly's picture

And there... is your Short notice, right there! Now, wait for confirmation on the chart. About time the Squid chimed in.

Mon, 03/19/2012 - 14:38 | 2270459 SheepDog-One
SheepDog-One's picture

There it is folks! The Fredo Kiss of Death from Goldman! RUN from Apple lol.

Mon, 03/19/2012 - 14:38 | 2270460 kralizec
kralizec's picture

I smell a rat!

Mon, 03/19/2012 - 14:43 | 2270474 slaughterer
slaughterer's picture

My past experiences with the GS "Fredo kiss of death" is that it is good for one more pop.  Then it is thoroughly fadeable.  I would wait for AAPL to dance above $600 for a day or two before laying on the shorts.  It is good as done if nobody sues Apple for a new "hotter" iPad burning scars into their body. 

Mon, 03/19/2012 - 15:05 | 2270547 No One
No One's picture

If those hotter ipad burns can be marketed as iTattooes of the Apple Logo, I see APPL at $1,000 by years end.

Mon, 03/19/2012 - 14:40 | 2270465 DavidC
DavidC's picture

Take a look at an Apple weekly or monthly chart to see exponential growth in action. At some point exponential growth collapses.

DavidC

Mon, 03/19/2012 - 14:42 | 2270471 Pool Shark
Pool Shark's picture

 

 

Denninger has an interesting take on the reason for Apple's hasty dividend announcement:

http://market-ticker.org/akcs-www?post=203569

New iPad sales below expectations?

Mon, 03/19/2012 - 14:49 | 2270501 Pool Shark
Pool Shark's picture

 

 

P.S.  10-year yield up to 2.38%

That's a full 1/2% backup in rates in a single week.

How's that housing market recovery workin' out for ya?

Mon, 03/19/2012 - 15:45 | 2270714 ZeroPower
ZeroPower's picture

Indeed, crazy moves. The rates traders here are sweating bullets. Tons on the street were still long waiting for that crucial re-test of 1.70s area we saw during the Euro crisis (i like how this is in past tense implying its finished, but i digress...) and so lots of hurt right now for those who didnt short. Point is, considering no real catalyst unless we look at EU elections, this rally has shown to be resilient and bonds are only finally starting to catch up. Wouldnt be surprised to see a 3 handle on 10years if S&P gets to 1500 - which is funny and ironic at the same time.

Mon, 03/19/2012 - 14:50 | 2270505 Waterfallsparkles
Waterfallsparkles's picture

Huffington Post says there is a Heat problem with them.  They are too "Hot to handle".  Sorry for the Pun.

Mon, 03/19/2012 - 14:44 | 2270480 monopoly
monopoly's picture

Agree, I do not care how much I like AAPL or how many of their toys I have, I look at that chart at it spells "parabola". Can it go to 650 first, of course it can, but any one except Kramer puts out a warning flag, if not earlier, right here. Great company, lousy chart.

Mon, 03/19/2012 - 14:45 | 2270485 slaughterer
slaughterer's picture

GS has turned into the AAPL i-BEAR.  Thanks for the commish for our advice to raise your dividend: now we short you to iCollapse. 

Mon, 03/19/2012 - 14:45 | 2270487 Ted Baker
Ted Baker's picture

LATEST RUMOURS:-

(1) ISRAEL AND EVENTUALLY US WILL ATTACK IRAN BEFORE WEEK 1 APRIL

(2) GOLD PRICES TO SPIKE TO 2010 USD/OUNCE AND OIL TO REACH 130 $/B

(3) QE ANNOUNCEMENT WILL COME ON WEEK 2 OF APRIL

(4) US EQUITY MARKETS TO CORRECT BY 8-10% OVER THE NEXT 3 WEEKS - WORST PERFORMERS FINANCIALS

(5) MEXICAN PESO TO REACH 11.5 VS. USD AND CANADIAN DOLLAR 0.93 VS. USD BEFORE END OF MARCH

(6) UK AAA RATING WILL BE DOWNGRADED IN 2 WEEKS TIME

(7) CRISIS IN EUROPE WILL RETURN WITH PORTUGAL, SPAIN, IRELAND AND ITALY AT THE FRONT OF THE TURNMOIL

(8) END OF THE BULL MARKET FOR APPLE

(9) US UNEMPLOYMENT WILL GET WORST AND US HOUSING WILL DROP FURTHER

Mon, 03/19/2012 - 14:48 | 2270499 Pladizow
Pladizow's picture

Stick to shoes and clothing!

Mon, 03/19/2012 - 14:56 | 2270518 rubearish10
rubearish10's picture

I'll take any one of these.

Mon, 03/19/2012 - 17:18 | 2271002 Winston Churchill
Winston Churchill's picture

All of the above.

This is multiple choice is'nt it ?

Mon, 03/19/2012 - 14:46 | 2270492 Bam_Man
Bam_Man's picture

Yeah, Citi's stock has only risen by 10% since they flunked the stress test.

Total Joke of a "market".

Mon, 03/19/2012 - 14:47 | 2270494 Waterfallsparkles
Waterfallsparkles's picture

Goldman already put it on its Buy list around $540.  Someone wants to keep the price up to Sell.

Mon, 03/19/2012 - 14:48 | 2270497 MsCreant
MsCreant's picture

It's time to play the music,

It's time to light the lights...

http://www.youtube.com/watch?v=Uh_aG5MzPVM

Mon, 03/19/2012 - 14:50 | 2270506 Piranhanoia
Piranhanoia's picture

Get your new app,  iSwindle,  direct from your GS camp guard or from the forced ap store now.  We mean now!

Mon, 03/19/2012 - 14:51 | 2270509 kralizec
kralizec's picture

Heh!  That there is good stuff!

Mon, 03/19/2012 - 15:19 | 2270542 Pool Shark
Pool Shark's picture

 

 

Isn't it funny how Apple has become the very "Big Brother" it parodied in its famous 1984 Superbowl commercial?

http://www.youtube.com/watch?v=HhsWzJo2sN4

Ironically, IBM PC's (and their progeny) have pretty open architecture where you can run any operating system you want; while Apple has a monolithic, centrally-controlled operating system (not to mention their ability to track your whereabouts with their products...)

And Apple products are manufactured by slaves living in an Orwellian society.

Funny how things turnout sometimes...

Mon, 03/19/2012 - 17:16 | 2270999 DCFusor
DCFusor's picture

Yeah.  Funny how anyone who tries (and suceeds!) in getting a whole crowd to "think different" the same winds up.

Digging linux here, myself, because I can write my own code for it a lot easier (and cheaper) than windows with their weird security model and high priced tools.

But what really sucks - metro in windows, unity in linux, being shoved down our throats as "one UI to rule them all" because it works out for Apple on a fondleslab - which no one else is selling all that well.  They  really suck on a multimonitor desktop for a user who doesn't need the computer to tell him what's possible for it every time it's turned on.  I like my simple menus, and having all my pixels for ME, and I couldn't even reach the extremes of my multiple screens if they WERE touch sensitive.

Yet, here go the lemmings over the cliff.  SInce there really wasn't any innovation in the new iPad (more of everything isn't innovation, it's obvious) I see their decline beginning now...

 

Mon, 03/19/2012 - 18:01 | 2271078 TheFourthStooge-ing
TheFourthStooge-ing's picture

DCFusor said:

Yeah.  Funny how anyone who tries (and suceeds!) in getting a whole crowd to "think different" the same winds up.

Marketing: convincing a target audience that they need something which is, as Ken Nordine would put it, differently the same.

Digging linux here, myself, because I can write my own code for it a lot easier (and cheaper) than windows with their weird security model and high priced tools.

Same here. I've been using it as a desktop/laptop system for ten years. The applications have really matured both in terms of utility and usability.

But what really sucks - metro in windows, unity in linux, being shoved down our throats as "one UI to rule them all" because it works out for Apple on a fondleslab - which no one else is selling all that well.

Agreed. I use a KDE 3 GUI because I like KDE and know how to make it do what I want. I have no desire to use Gnome, and KDE 4 is loaded with retarded, floating, spinning, animated, semi-transparent crap that serves no purpose. If I wanted to see that kind of thing, I'd drop a few hits of blotter.

Yet, here go the lemmings over the cliff.  SInce there really wasn't any innovation in the new iPad (more of everything isn't innovation, it's obvious) I see their decline beginning now...

Technoboredom sets in. Lemmings try to fill the emptiness in their existence with new gadgetry, and when the novelty wears off they need more new gadgetry. When the economy starts to get really bad and the mod-a-gogo infrastructure begins to break down, they'll be the ones you see sitting on the curb furiously moving their finger across the touchscreen of their non-functional "smart" phone and, in agonized tones, chanting repeatedly, "this isn't happening."

What a laugh I'll have.

 

Mon, 03/19/2012 - 23:25 | 2272030 StychoKiller
StychoKiller's picture

KDE 4 Desktop Effects can be disabled, look into

System Settings/Desktop/Desktop Effects

 

Mon, 03/19/2012 - 14:51 | 2270508 Dr. Engali
Dr. Engali's picture

Looks like Goldman has some Apple to offload. The run is almost over.

 

 

 

Mon, 03/19/2012 - 14:54 | 2270510 monopoly
monopoly's picture

Emphasis on "rumors". To me that looks like a Zero Hedge wish list. 

Mon, 03/19/2012 - 14:53 | 2270511 blu
blu's picture

The initial retail list price of the ground-breaking Apple][ computer was ... $666.

No I did not make that up. G00gle it yourself.

So sometime tomorrow, the cost of a single share of Apple Inc would have at one time (not adjusting for inflation) bought their signature product. I don't know what that says about valuations, or the company as a whole, or that industry segment, but it seems really interesting.

Mon, 03/19/2012 - 14:53 | 2270512 Waterfallsparkles
Waterfallsparkles's picture

Only Stock holding the Market up.  Except of course IBM.

Goldman must want to Short and Sell tons of other Naz stocks.  Have to keep Aapl up to Sell and Short the entire Market.  Before the end of the Twist.

Mon, 03/19/2012 - 14:55 | 2270515 JohnKozac
JohnKozac's picture

My ex-broker told me to buy Lerman Bros two weeks before it went bankrupt....he also suggested Lehman Mini Bonds that went to zero.

My view is when they need to dump sh*t, they call their Muppets and tell them to "buy! buy! buy!"......

Good luck.

Mon, 03/19/2012 - 14:56 | 2270520 monopoly
monopoly's picture

I say it again. Until AAPL breaks "do not short" stocks in general. But the moment is closer. I can just taste it. And am ready to dust off my mouse and take action. This sitting around is boring and interesting at the same time.

Mon, 03/19/2012 - 14:56 | 2270521 mind_imminst
mind_imminst's picture

I would say it is a good time to fade/short AAPL as well except that the dumb retail money is not yet pouring in. It is mostly debased fiats right now holding things up. 

The correct time to short AAPL is when I buy the stock. I have an uncanny ability to top tick nearly every purchase (in the short term). Wait a minute, does that mean I AM the dumb money? (rats!)

I'll let everyone know if/when I buy AAPL so you can hedge accordingly.

Mon, 03/19/2012 - 14:57 | 2270526 devo
devo's picture

Does Goldman realize the Ipad 3 is overheating and thus nobody is going to buy it, of if they do, they will return it? Or Apple will have to take huge loses recalling it? lolol

Mon, 03/19/2012 - 14:58 | 2270528 alien-IQ
alien-IQ's picture

Surely this signals at least a short term top for AAPL.

When GS says to go long...you know the drill. Act accordingly.

Mon, 03/19/2012 - 15:07 | 2270557 ziggy59
ziggy59's picture

iPad3 is the new iMelt

Do NOT follow this link or you will be banned from the site!