Buy Apple, Says Analyst

William Blair analyst Ralph Schackart Thursday morning picked up coverage of - wow, here’s a stunningly original idea - Apple (AAPL). He rates the stock Outperform.

“Our investment thesis is that once consumers buy an Apple media or smartphone product - (i.e., iPhone or iPod) or use its iTunes digital media service, they are more likely to purchase Mac computers or other Apple products,” he writes. “We believe the closed Apple digital content ecosystem, or walled garden, entices consumers to purchase Apple devices for a complete digital entertainment experience.”

Were Apple to gain another 1% of market share in the Mac and smart phone markets, the company could generate an extra $1.36 in EPS, he calculates.

The Blair analyst said there are two requirements for Apple to keep increasing shareholder value: One, continue developing new and innovative products and services. And 2, redeploy its cash effectively.

AAPL Thursday is up 57 cents, or 0.4%, to $165.75

Original post

Comments

[guliamo:]

Hello? Ralph? where have you been for the past 5 years?
Nice of him to wake p from the comma and see an oppertunity in Apple :)
I think his analysis is correct, but out dated. Apple's horizon lies in media selling.
The next step for Apple is connecting iTunes to TV and selling you programs by demand. This will be war against cable companies, a war Apple is poised to win because internet is becoming the primary connection to all homes... 10 years down the line, who needs cable anyway ??

Sep 03 11:59 AM

[Advill:]

110% Agree, I live part of the year in Spain where viewing TV delivered in a copper telephone wire is common, you pay your TV (60 channels) and receives 6MB connection to internet and no cost of phone service (long distance within Spain and local calls), it cost less than 60€ (nowdays expensive in FX to dollar) but affordable in local terms.

That is the natural environment for apple products.
Regards.


On Sep 03 11:59 AM guliamo wrote:

> Hello? Ralph? where have you been for the past 5 years?
> Nice of him to wake p from the comma and see an oppertunity in Apple
> :)
> I think his analysis is correct, but out dated. Apple's horizon lies
> in media selling.
> The next step for Apple is connecting iTunes to TV and selling you
> programs by demand. This will be war against cable companies, a war
> Apple is poised to win because internet is becoming the primary connection
> to all homes... 10 years down the line, who needs cable anyway ??

Sep 04 08:23 AM

[mollytjm:]

Honestly, it's taken the investment community forever to 'get' Apple. This is a great company with no debt, huge amounts of cash, fast GOOD innovation and great customer service. It's name is recognizable all over the world and it has multiple streams of income.
Hello!....this is a great long term investment.
Long APPL

Sep 04 10:01 AM

[Paul Zimbardo:]

My favorite aspect is his factors for continuing success: "continue developing new and innovative products".

I cannot think of one company in which that would not apply. Nice boilerplate to throw in an analyst's report.

Sep 04 12:48 PM

[Techtrader10:]

Wednesday is the big day for Apple, they will be bringing out their new stuff the the season. The stock should be strong until then, however I was disappointed with the action late Friday.

Sep 05 05:18 AM

[A Page:]

Apple would really turn the tables if their web search box turned into an Apple Search engine across their web apps and hardware - talk about the revenue stream across all of it's platforms. That would be a real punch in the head to Google. :) Take that cromium - BLAM... Think how fast Google would shrink... I think you would see an inversely proportional stock movement between Apple and Google. Can't wait until the server Farm is finished... Cloud and Search in one facility... Can you see it?

When you carry your computer with you and everything including your display is all blue tooth and as you approach your desk it automatically and wirelessly docks to your monitor, keyboard, and other - who cares about PC anymore. I like to think "Everything Apple" is a great Slogan... Of course I am biased. I have left PC forever in January... I won't ever build a PC again either.





On Sep 03 11:59 AM guliamo wrote:

> Hello? Ralph? where have you been for the past 5 years?
> Nice of him to wake p from the comma and see an oppertunity in Apple
> :)
> I think his analysis is correct, but out dated. Apple's horizon lies
> in media selling.
> The next step for Apple is connecting iTunes to TV and selling you
> programs by demand. This will be war against cable companies, a war
> Apple is poised to win because internet is becoming the primary connection
> to all homes... 10 years down the line, who needs cable anyway ??

Sep 10 02:55 PM