Andrew Neff
Andrew Neff
buying calendar continue operating opportunity stock view
We continue to view the stock pullback as a buying opportunity, with Apple's price-to-earnings at 17 times our calendar 2007 operating earnings-per-share estimate.
apple balance based capital financial future growth increasing innovative invested ownership positive potential price products rate rating reasonable return sheet strong target view
We reiterate our 'buy' rating on Apple and our price target of $80 based on valuation of two times the company's EPS growth rate of 20 percent, reasonable in view of its innovative products and strong product cycles, ownership of technology, strong balance sheet and financial management, increasing return on invested capital and potential for future positive surprises.
renewed spirit view vigor
It corroborates our view of a renewed sense of vigor and competitive spirit at HP.
accord apple appreciate deserves dynamics financial great investors minds returning step superior viewed
Investors do not appreciate the superior financial dynamics at Apple and do not accord it the valuation it deserves - because, in our minds ÂÂ-- Apple is still viewed by many as a reformed alcoholic - just one step away from returning to the gutter. We have a different view and think there is a great team.
both continued estimate happen increases large law multiple numbers requires rich strong surprises unlikely upside
The stock's rich multiple requires continued strong upside surprises and estimate increases -- both of which are unlikely to happen near-term as the law of large numbers catches up with the company.
against company engines execution goals growth multiple revenue
We think the company has multiple engines of growth coupled with better execution against the goals of diversifying its revenue streams.
believe extend further growth lead means potential
We believe this means more growth and the potential to further extend its lead in the server arena.
appliance beginning business ibm network outlook positive provided revenue
While the earnings-per-share outlook was inline with expectations, Network Appliance provided a positive revenue outlook for the fourth-quarter with IBM business just beginning to ramp.
july last seven six stocks technology time weak
Six of the seven last years, technology stocks have been weak around that time period. June, July has usually been around a bottom.
apple bundle creates customers july launch lengthy mac march onto plan plans potential rather release stores surprised systems waiting
More importantly, we are rather surprised by the launch plan for Mac OS X. Apple plans to release the new OS into stores in March and then bundle onto systems in July -- which creates the potential of a lengthy stall by customers waiting for the new OS.
good numbers operating
The operating numbers were not as good as advertised.
both confident continued estimate happen large law network numbers require rich strong surprises underlying unlikely upside
While we are very confident about the firm's underlying fundamentals ... Network Appliance's rich multiples require continued strong upside surprises and estimate increases, both of which are unlikely to happen near-term as the law of large numbers catches up with the company.
compelling ibm maintain near pressure rating remain stock
While the stock could remain under pressure near term, we maintain our 'buy' rating on IBM owing to a compelling second-half story.
across ahead business demand estimates halfway management previous quarter raised reflect relative strong sun trends upside
We raised our EPS estimates for Sun to reflect upside in relative demand to our previous expectations. Sun management indicated that demand trends were ahead of its expectations ... and that business halfway into the quarter was very strong across the board.