Apple Inc. (NASDAQ:AAPL) carries a “structural advantage” that will enable it to gain PC and smartphone market share, according to analysts from Credit Suisse. In a report to investors today they have reiterated their Outperform rating and set their target price at $750 per share.
Credit Suisse analysts’ earnings per share estimate for calendar year 2012 / 2013 are 3 to 17 percent above consensus. They believe Apple Inc. (NASDAQ:AAPL) will deliver a “robust” earnings per share growth of 25 percent, heading toward “$75 earnings power.” They expect that the iPhone will continue to gain share this year and keep the company ranked above its peers.
On Credit Suisse’s proprietary scorecard, which looks at nine different factors like software, services, brand, and distribution, Apple Inc. (NASDAQ:AAPL) ranks at the top. The analysts believe Apple “will be able to consolidate its smartphone market share to 20 percent” this year, an increase from 19 percent last year, and as the company scales distribution, they believe the next 50 largest carriers will increase the number of iPhone units they serve by about 75 million each year.
In addition to the iPhone, Credit Suisse also sees the company’s broader compute offerings as giving it a competitive edge. They believe that because Apple offers not only smartphones but also tablets and PCs, it has an edge over competitors that do not offer as many different product lines. When looking at the entire compute market, the analysts said Apple Inc. (NASDAQ:AAPL) has about a 19 percent market share, which will likely grow to 22 percent over the long term.
Credit Suisse views shares of Apple Inc. (NASDAQ:AAPL) as “inexpensive in the context of 30 percent bottom-line growth and $128 of net cash per share.
