Even Though Apple (AAPL) Sells-Off, Wall Street is Licking Their Chops

Shares of Apple (Nasdaq: AAPL) are lower today following fourth quarter results, but you wouldn't know that if you just read the comments from Wall Street analysts. A number of Wall Street's finest are tripping over each other to raise estimates and price targets following the results.

Apple reported Q4 earnings of $4.64 per share, well ahead of the consensus of $4.06. Revenues rose 67 percent to $20.34 billion, topping analysts views of $18.86 billion.

Shares of Apple are down 2.2 percent today to $311, but are well of the lows.

Analysts commented on the huge iPhone and iPad numbers, Mac halo effect, gross margin disappointment, Steve Jobs rant, and M&A, among other things.

Here is a run-down of some of the more interesting tidbits from analysts:

• Ticonderoga - the pullback is a "tasty gift in time for the holidays.". Maintain Buy, raises estimates and price target from $430 to $450.
  
  
• BGC Partners - "Apple posted revenue of $20.3B – its first quarter to have revenue exceed $20B." Maintains Buy, raises estimates and maintains $350 price target.
  
  
• Canaccord Genuity - "we anticipate strong earnings growth for Apple over the next two years versus." Maintains Buy, raises estimates and price target from $366 to $421.
  
  
• Deutsche Bank - "We believe NT GM (near term gross margin) concerns will create a buying opportunity." Maintains Buy, raises estimates and maintains $375 price target.
  
  
• Jefferies - "AAPL was clearly questioned as to their intentions regarding their growing cash hoard. AAPL's CEO Steve Jobs felt that compelling opportunities are likely to present themselves in the future." Maintains Buy, raises estimates and maintains $365 price target.
  
  
• Kaufman Bros - "We and Street got overzealous on initial iPad ramp but consensus made same mistake with iPhone ramp" Maintains Buy, raises estimates and price target from $374 to $380.
  
  
• Hapoalim Securities - "Steve Jobs basically trashed competing smartphone and tablet offerings for 5+ minutes, a somewhat surprising appearance, and one that we can't quite interpret just yet." Maintains Buy, raises estimates and price target from $318 to $325.
  
  
• Wells Fargo - "Management highlighted on the call that half of the Macs sold in the quarter were sold to new customers that had never before owned a Mac." Maintains Outperform, raises estimates and keeps valuation range of $360-$380.
  
  
• Janney Capital - "We are lowering our FY11 gross margin estimate to 38.1%, from 39.4%, as we now believe gross margins will be closer to guidance than the historical trend because Apple uses more expensive components on the iPhone" Maintains Buy, raises estimates and value target from $370 to $385.
  
  
• UBS - "AAPL has one of the strongest & visible 2011 product releases in our group including new OS/ MacBook Air potentially this week, CDMA iPhone (Jan/Feb), new iPads (Mar/Apr), iPhone5 (Jun)." Maintains Buy, raises estimates and price target from $350 to $365.
  
  
• Morgan Stanley - "gross margin reset more than offset by unit upside." Maintains Overweight, raises estimates and price target from $346 to $375.
  
  
• Susquehanna - "Shares could take a breather given mixed 4QFY10 results. We would take advantage of any weakness and remain Positive heading into Holiday sales of iPhone, iPad, and iPod." Maintains Positive, raises estimates and price target from $365 to $390

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferies Downgrades Apple (AAPL) to Underperform
• Bicara Therapeutics Inc (BCAX) PT Raised to $39 at BTIG
• After-Hours Movers: CRWV, NBIS, SMCI, LITE, CAVA, HRB