Amid all the iPad hype and iPhone fever comes a lone voice from Wall Street, cautioning that even with Apple, the rules of gravity still apply. Revenue and growth by the Cupertino, Calif. maker of consumer electronics will start to slow, an analyst warned investors Tuesday.
Despite projections of $75 billion in revenue in fiscal 2011 and $85 billion for fiscal 2012, “the law of large numbers should cause revenue and earnings per share growth to slow meaningfully during the next two years,” Citigroup analyst Richard Gardner writes.
The analyst bases his judgement on the assumption Verizon Wireless will get the iPhone in early 2011.
Gardner inched-up his target price for Apple shares to $330, a slight increase from his previous $320. He warned that analysts suggesting Apple shares could reach $375 or more “are not adequately factoring” in the natural rise and fall of stock values.
With the end of the third fiscal quarter next week, the analyst projects Apple earnings per share will reach $3.20, up from $2.75. For fiscal 2010, which ends in September, Gardner expects Apple’s shares will earn $13.93, up from $13.17. He bumped his 2011 expectations up a dollar, to $16.50 while forecasting $18.49 for fiscal 2012.
[via Barron’s]
