Apple Stock

Apple Stock

The powerhouse that is Apple’s stock has had a few shaky months prior to Wednesday night’s blockbuster earnings report, but J.P.Morgan analysts expect the company’s share price to rebound in a big way.
Apple Inc. announced a massive profit beat after market close on Wednesday, posting earnings per share of US$6.40 — way above analyst expectations of  US$5.36 EPS. Revenue meanwhile was an impressive US$24.42-billion as strong iPhone sales and market growth in the Asia-Pacific region lined the pockets of the world’s largest tech company.
The strong numbers evaporated concerns about weak iPhone and Mac sales, as well as worries that margin pressure would emerge due to supply chain weakness after the Japanese earthquake.

“Apple squashed the recent parade of investor concerns.,” J.P.Morgan analyst Mark Moskowitz said in a note. “The company exhibited momentum where it matters. There was no deterioration in iPhone sales velocity, total gross margin, or Apple’s supply chain.”
Mr. Maskowitz added that he believed the recent pullback in Apple’s share price — stemming from the concerns mentioned above — was overdone, and that the big profit beat stands to put Apple shares back on an upward track.
Apple shares did see an immediate boost Thursday, with the stock rising nearly 3% to US$352.57. J.P.Morgan currently has a year-end price target on the company’s stock of US$450.
Mr. Moskowitz did add though that investors will continue to play close attention to Apple’s product line and its growth overseas. He also said the company’s ability to handle iPad demand will be of concern.
“Questions will linger over Apple’s ability to ramp adequate supply of the iPad to serve demand and take advantage of the first mover advantage in tablets, all keeping upside potential in the numbers,” he said.
J.P.Morgan kept its overweight rating on Apple unchanged.