Citing impressive MacBook sales and the expansion of the iPhone 3GS beyond 8 countries, USB analyst Maynard Um upped his target price for Apple stock to $170, up from a previous target of $160. Calling Apple a “short term buy”, Maynard also factors in the rumored Apple tablet, but cautions investors that Apple’s margins might take a hit if consumers shy away from its more expensive and margin friendly devices such as iPhone and the iPod Touch.
Looking at Apple’s earnings statement, however, it’s clear that Apple’s most successful products are its high margin products so that shouldn’t be too grave a concern. Realistically, and in Edible Apple’s humble opinion, Apple stock price will probably surpass $170 sooner than later. $200 might even be on the horizon if impressive news about Apple’s seemingly impending tablet continue to surface.
When Apple last announced earnings at the end of July, it completely obliterated analyst estimates when it reported EPS of $1.19 a share on sales of 2.6 million Macs, 5.2 million iPhones, and 10.2 million iPods, the majority of which were attributable to iPod Touch sales.