Goldman Adds Apple to Americas Conviction Buy List

by Jody Mitoma on May 27, 2008 at 7:53 pm

Goldman Sachs added Apple Inc to its Americas conviction buy list, stating that shares will most likely benefit from the launch of the company’s second-generation iPhone next month, and from higher projections of iPhone sales for the second half of the year.

Analyst David Bailey also raised his target on the stock to $220 from his previous set down of $185, and said Apple should be able to increase its available iPhone subscriber base by more than 80 percent this year thanks to the many expansions Apple has done with international markets lately.

“We continue to expect Apple to beat its 10 million unit goal for calendar year 2008 driven by broader global distribution and the availability of third-party applications, which should keep Apple well ahead of the competition,” Bailey wrote in a note dated May 22.

Bailey, whom rates Apple stock as “buy”, expects iPhone unit shipments to increase to 11 million in 2008 from 3.7 million in 2007. Apple stocks have raised 42 percent in the past three months.

(Source: Reuters)

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