NEW: Shaw Wu of Sterne Agee has Buy on Apple (AAPL) on CNBC with target of $750
Tuesday, April 24, 2012 at 1:07PMSUMMARY: After hours on CNBC, Stern Agee analyst Shaw Wu had a Buy on Apple (AAPL) at $750. No time frame was mentioned. We are treating as a Medium Term tip.
TIP TRACKER: Click here to check latest Yahoo Finance price.
WHY BUY? : Shaw Wu quantified some of the reasons for his optimism: expecting to see 29.5mn IPhone units (58% increase year over year) , and 12.3mn IPads. He also said he was expecting Earnings Per Share of $10.2, versus $10.04 of the analyst consensus. Expecting 43.5% gross margin (Apple was "guiding" towards 42.5%). Achieving that level of grpss margin would validate his positive view, Wu suggested.
He discussed investor psychology to explain the recent drop in shares.
QUOTE: "These things don't go straight up"
PRICE TARGET: $750
TIME FRAME: None
SCORECARD: We will review in 6 months on October 24, 2013, with monthly updates on the way.