Kevin Dede, who used to be with Brigantine Advisors but recently moved to Auriga USA, today resumed coverage of Apple (AAPL) with a Buy rating and a $700 price target.
Writes Dede, Apple’s brand and the company’s hold on software developers is proving difficult to catch up to for competitors, with the company having a “unique position” in computing, connectivity and content”:
The combination of mobile and computing platforms extend Apple�s brand and entice independent software developers, which has compounded the inherent value of the ecosystem to such a degree, we believe, competitors cannot equally match Apple across all platforms [...] The sheer scope of Apple�s devices in the end market and the uniformity and simplicity of design entices software developers which scales applications and in turn draws even more customers. We don�t see the trend being upset at this point, as broad expectations now call for the introduction of a large, flat-panel Apple TV to complement the other media access and creation devices it already offers. We suspect the TV to be flush with a specifically-tailored interface and software that have come to define Apple. Clearly the addition of millions more units at an ASP comparable to the industry norm could add billions to Apple�s sales.
Dede’s estimate for this year is for $155.1 billion in revenue and $43.21 per share in profit. That is below the Street consensus of $159.9 billion and $43.95 a share.
Apple shares today are up $9.48, or 1.5%, at $627.89.
Previously: Apple: Piper Ups Target to $910; First Trillion-Dollar Stock? April 3rd, 2012.
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