Apple Inc. (NASDAQ: AAPL) has been reiterated as BUY with a $560 price target objective this morning by Canaccord Genuity. The firms channel checks indicate record iPhone December quarter sales and showed that the iPhone held dominant sell through share at the largest three U.S. carriers.
The firm expects record iPhone sales in the December quarter and new product launches in 2012 including iPad 3, iPhone 5 and Apple TV all to generate strong growth for Apple and the stock remains a top pick.
Despite heavy promotions for new LTE smartphones, Verizon recently announced record iPhone sales of 4.2 million units in the December quarter, up 110% sequentially following the iPhone 4S launch. The firm also sees 6 million iPhone units sold at AT&T, and another 2 million at Sprint…. All told, call it 12 million U.S. iPhone sales.
The firm’s $560 price target is based on shares trading at roughly 14-times its 2013 pro forma EPS estimate. The current consensus price target from Thomson Reuters is $505.60 according to Thomson Reuters.
JON C. OGG