Apple iPod’s Attractive, Mac Trends
As Apple (AAPL) shares flirt with $200 — apparently, an important “psychological” level — Barclay’s Capital analyst Ben Reitzes this morning writes that the stock is attractive at roughly 26 times his projected fiscal 2010 (ending September) profit projection of $7.55 per share. Reitzes has an “Overweight” rating on the shares and a price target of $235.
Reitzes said a delay of two weeks on the Apple website to send his iMac reflects not only a graphics chip problem with the machines,as mentioned above, but also stronger than expected demand.He thinks his estimate for Mac sales units to rise 22% this quarter could be low. Also, recent data from research firm NPD show Apple selling more of its higher priced iPod Touch among total iPod sales, which could mean a 10% decline in revenue on a 5% drop in iPod units this quarter is also too pessimistic, Reitzes writes.
Reitzes doesn’t comment on a WSJ story late yesterday by Sam Schechner and Yukari Iwatani Kane saying CBS (CBS) and Disney (DIS) are considering putting subscription-based television programming on Apple’s Apple TV product. Schechner and Kane cite anonymous sources.
