Analyst Rob Cihra from Evercore Partners raised his price target for shares of Apple to a record $750 after the news of the company’s new quarterly dividend flashed. The strong demand for iPad is also a reason for this act.
The Cupertino based tech giant’s stock got past the $600 mark. The surge in the price of the stock came after Apple announcement regarding the initiation of a dividend of $2.65 per share and a share repurchase program. The iPhone maker also revealed the good news of the sales of the new iPad topping 3 million during its recently launch weekend and executives indicated about being “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. Cihra viewed the Apple’s share repurchase program as “long overdue.” He viewed the announcements as meaningful because Apple “at least broke the seal.” The analyst 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 is now expecting 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 are also adjusting their price targets. Let us see whether these predictions will come true or not.
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