Apple (AAPL) soars after Goldman adds to its “conviction Buy” list. The logic seems reasonable, although we can’t imagine there are too many people in the world who don’t know the 3G iPhone’s about to come out (What’s that about buying on the rumour, selling on the news?) In any event, too bad the firm couldn’t have had more conviction a few months ago, when AAPL was 40% off, at $120. Reuters:
Goldman [says] shares will likely benefit from the launch of the company’s third-generation iPhone next month, as well as from the sharply higher projections of iPhone sales for the second-half of the year. Analyst David Bailey also raised his target on the stock to $220 from $185, and said Apple should be able to increase its available iPhone subscriber base by more than 80 per cent this year due to aggressive expansion into international markets.
“We continue to expect Apple to beat its 10 million unit goal for calendar year 2008 driven by broader global distribution and the availability of third-party applications, which should keep Apple well ahead of the competition,” Bailey wrote in a note dated May 22
Bailey, who rates the stock “buy,” expects iPhone unit shipments to increase to 11 million in 2008 from 3.7 million in 2007.