Analyst from Evercore Raises Apple Price Target to $750
Analyst Rob Cihra from Evercore Partners raised his price target for shares of Apple to a record $750 after news of the company’s new quarterly dividend and strong demand for the iPad.
The Cupertino California company’s stock hit a new milestone recently after getting past the $600 mark. The surge in the price of the stock came after Apple announced
that it was initiating a dividend of $2.65 per share and a share repurchase program. The company also revealed the good news of the sales of the new iPad topping 3 million during its recently launch weekend and executives have indicated that they are “thrilled” with the record weekend.
In a note to his investors, Cihra mentioned that the 1.8% yield “modest,” while predicting that it will “help broaden” Apple’s investor base. He viewed the company’s share repurchase program as “long overdue.” The analyst viewed the announcements as meaningful because Apple “at least broke the seal.” Cihra ended up raising his estimate for the first quarter calendar 2012 iPhone sales from 30 million to 32 million units and lifted his iPad estimates from 10 million to 13 million based on “strong initial uptake.”
Evercore now expects sales of 66 million, which is up from the 59 million. The firm reiterated its Overweight and Top Pick ratings for Apple and raised its price target to $750 up from the previous $650. With Apple increasing nearly 20% in the last month alone, analysts continue to adjust their price targets. We’ll likely be seeing Apple stock climb but we’ll have to wait and see whether the predictions are accurate or if analysts are incorrect yet again.