As Apple’s share price continues to climb to new highs, Hudson Square Research analyst Daniel Ernst recently raised his price target for Apple share to $500.
With the launch of the iPhone, the App Store, the iPad, and the relaunch of Apple TV, we estimate Apple’s total addressable market for hardware, content, and services expanded from roughly $400 billion to $1.5 trillion. Apple’s Mac share has doubled over the last five years and we believe could double again. In a little over 3 years Apple has captured less than 3% of the mobile phone market by units, but by revenue Apple holds a ~14% share. The iPad is off to a strong start, and the product greatly expands Apple’s addressable market for content distribution. While the new Apple TV and iAd are still in the very early stages, we believe the opportunity is very strong.
Ernst also raised his 2011 EPS estimate for Apple to $17.67.