Company News

UPDATE 2-Apple shares jump on results, tablet hype

 * Shares up 4 pct on excitement over Wed. product launch
 * At least 7 brokerages raise Apple price target
 (Adds analyst comment, share price, dateline)
 SAN FRANCISCO, Jan 26 (Reuters) - Apple Inc's AAPL.O
strong quarterly results and mounting excitement over its
product launch on Wednesday pushed shares of the iPhone maker
sharply higher on Tuesday.
 Apple shares rose 4 percent to $211.26 on Nasdaq in early
afternoon trading.
 At least seven brokerages raised their price targets on
Apple a day after the technology giant posted big gains in
profit and revenue in the December quarter, helped by strong
Mac sales and surging international growth.
 "We see a lot to like in Apple's results and would continue
to be strong buyers ahead of this week's main event -- the
tablet unveiling on Wednesday," Oppenheimer & Co analyst Yair
Reiner wrote in a research note.
 All eyes in the technology world will be trained on San
Francisco on Wednesday at an event where Apple is expected to
unveil a tablet-style computer aimed at defining a brand new
category of media devices. [ID:nN21234636]
 Morgan Stanley analyst Katy Huberty wrote: "We view the
combination of new product launches, broader distribution and
more attractive pricing as demand drivers over the next two
 "Our base case assumes the new tablet adds 4 million
shipments, $3.2 billion revenue and 82 cents of earnings per
share in calendar 2010 but we see potential upside to 6 million
units and $1.25 EPS," Huberty said.
 "Apple remains our top pick in IT hardware, and we believe
the story has staying power for 2010," JP Morgan analyst Mark
Moskowitz said in a note.
 Increasing contribution to growth from international sales,
and the potential end to iPhone exclusivity in the United
States should be incremental catalysts in 2010, Moskowitz
 International sales made up nearly 60 percent of Apple's
revenue in the December quarter, more than doubling in the Asia
Pacific region and rising 40 percent in Europe.
 Mac sales surged 33 percent to an unexpectedly strong 3.36
million units, while iPhone sales doubled from a year ago to
8.7 million. IPod sales fell 8 percent to 21 million units.
 Apple also reported a hoard of cash and securities of
nearly $40 billion.
 "Apple continues to gain share in large markets while
generating tremendous amounts of cash," Broadpoint Amtech
analyst Brian Marshall wrote, calling Apple a "must-own
technology bellwether."
 The following is a list of price-target changes:
 Brokerage            Price Target ($)   Rating
                      New    Old
 Barclays             265    260         Overweight
 JP Morgan            240    230         Overweight
 Oppenheimer          255    235         Outperform
 Goldman Sachs        230    220         Neutral
 Morgan Stanley       250    230         Overweight
 Credit Suisse        275    250         Outperform
 Broadpoint Amtech    264    260         Buy
 (Reporting by Gabriel Madway in San Francisco and Mansi Dutta
in Bangalore; Editing by Aradhana Aravindan and Richard Chang)