Citing expectations for holiday sales, J.P. Morgan Securities has lifted its revenue and earning per share estimates for Apple, reports CBS Marketwatch. “While we believe concerns over Apple’s valuation are certainly understandable given the stock’s rapid rise, we believe expectations for the company’s revenue and profit growth may still prove conservative,” J.P. Morgan told clients.
Read MoreJ.P. Morgan has raised its earnings estimates for Apple, saying it has “increasing confidence” in Apple’s music business. The firm raised fiscal 2005 and 2006 per-share earnings estimates to US$1.48 and $1.91, from $1.28 and $1.53, respectively. “The success of Apple’s digital music initiatives has been established, but its sustainability is still a hotly debated topic,” J.P. Morgan said.
Read MoreJ.P. Morgan has initiated coverage of Apple with a “neutral” rating. “In a research note published this afternoon, the analysts mention that the company is poised for robust margin expansions in the forthcoming quarters on account of its new digital music product offerings,” reports NewRatings. “JP Morgan expects Apple Computer’s new professional application products and the improving IT spending scenario to further boost the company’s earnings growth in the forthcoming years.
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