Credit Suisse analyst William Shope wrote Thursday in a note to clients that demand for Apple Inc products – such as Mac and iPhone - was higher than expected and raised his price target for the stock.
Shope also expects a revenue of $7.76 billion compared to a previous estimate of $7.44 billion. He expects a profit of $1.09 a share compared to a previous estimate of 97 cent. Analysts polled by Thomson Reuters expect a profit of $1.08 per share on $7.94 billion in revenue.
Shope maintains his Outperform rating and raised price target to $133 from $120.
Despite our view that consensus estimates may come under some incremental pressure this year, we believe Apple's shares remain attractive, particularly when considering its cash per share and healthy cash flow generation,” he wrote, according to Barron’s
Recently, the Cupertino-California based firm reported revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share, an increase of 34.7 percent in gross margins.
Sales of Macintosh desktops and notebooks were 2,524,000 during the quarter, sales of iPhones were 4,363,000 units and 22,727,000 for iPods.
Shares of Apple closed up $3.25, or 2.79 percent, to $119.57.