Tuesday, April 5, 2011

Apple (AAPL) Gets Boost on iPad Expectations

With iPad sales expected to rise above expectations, according to Canaccord Genuity analyst Mike Walkley, he gave the shares of Apple (NASDAQ:AAPL) a boost, raising his price target on them, along with EPS for 2012.

Walkley raised his iPad sales estimate for 2011 to 36.5 million units, 2.5 million more than his original iPad sales projection of 34 million.

As for iPad sales estimates for 2012, he sees it rising from 48 million to 54 million.

Concerning gross profit, that is expected to drop to 38.2 percent by Walkley, down from last year's 39.4 percent. Supply chain disruptions from the earthquake in Japan will probably force the company to offer up some price concessions in order to get the needed parts.

EPS estimate for 2011 is $22.74, while for fiscal 2012 EPS estimate to was increased to $26.64 from $25.60.

Apple closed Monday at $341.19, falling $3.37, or 0.98 percent. Walkley raised his price target on Apple from $460 to $480.

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