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Goldman Sachs analyst Bill Shope has a big, bullish note out on Apple this morning.He’s telling people to buy the stock headed into next week’s earnings report, which will be another monster, according to Shope.
He also says all of the recent concerns about Apple’s stock don’t make sense.
He raised his price target to $750 from $700, and took on all the recent investor concern about Apple…
…On the concern that carriers are going to cut their iPhone subsidies:
“We believe this concern is overblown. While some carriers will attempt to reduce the subsidy burden and tighten upgrade policies, many more will likely hold steady to capture share from the latter camp. In the end, all carriers are attempting to migrate their installed bases from feature phones to data-centric smartphones, and amid this transition, we think the risk of losing market share in the iPhone sub-segment is likely to be too great to ignore. On a shorter-term basis, we believe the building rhetoric for lower subsidies and tighter upgrade policies is likely to fade to a whimper, as vendors prepare their marketing strategies for the iPhone 5 refresh later this year.”
…On the concern that the June quarter will be a snooze because there will be no new products, and consumers will wait for a new iPhone:
“We believe recent investor concerns over a ‘catalyst-light’ June quarter are misguided, since this will be the first full quarter with a refreshed iPad, a lower-priced iPad 2, and a fully ramped iPhone distribution channel; in other words, the June quarter is when many of the recent catalysts begin to fully manifest into earnings power.”
…And finally, some investors are apparently worried about Mac sales:
“On the Mac side of the equation, we believe growth will be fairly lackluster this quarter, as both sell-in and sell-through pull back ahead of a broad Mac refresh. Indeed, we now believe that annual unit growth will come in at 14%, versus last quarter’s 26% growth. With that said, we believe our estimate is above recently reduced investor expectations, as most seem to be underestimating how much international share gains will counter tepid US growth. Furthermore, we expect any weakness in Mac sales to be more than countered by iPhone and iPad strength this quarter, and we expect growth to accelerate in the June quarter.”
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