Nov 15, 2012:
"We estimate sales growth of 25% for FY 13(Sep.), after a 45% rise in FY 12, reflecting success with iPhones and iPads. We also see related continuing growth from downloads, as hardware sales enable and promote consumption of apps, music, movies and books. We see iMac shipments rising at an above-industry pace, but iPod units continuing to decline because of market saturation and AAPL's already dominant market share. We project 15% revenue growth for FY 14.
Our 12-month target price of $700 reflects a premium to the calendar year 2013 P/E and P/E-to-growth multiples of the S&P 500 Information Technology sector. We think AAPL offers a unique and attractive combination of growth and value.