The fate of Apple’s (AAPL) shares seems to rise and fall based on rumors that the company will release a new version of its iPhone.
Apple’s shares are up 35% so far this year, so it needs more sightings of iPhone upgrades to keep the stock’s momentum between now and its earnings release.
According to Barron’s, Barclay’s has upped it price target on the stock from $113 to $143, and increased its earnings estimates. Since Apple traded near $116 last week, the analysis may come a little late. The newspaper says that the reasons for Barclay’s optimism is “anticipation of new iPhones to be unveiled in June and an ultra-portable device he expects later this year.”
The analysis may be due to the success of RIM (RIMM), the maker of the Blackberry, which recently announced extraordinary earnings and forecasts. The critical difference is that most Blackberry devices are bought by businesses for their employees while the iPhone remains primarily a consumer device. And, consumers still appear to be unwilling to part with a dollar for almost anything.
Douglas A. McIntyre
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