Jefferies: Apple TV & iPad Mini Now In Production, New $900 Target

Today, Peter Mizek, an analyst from Jefferies & Co., reiterated his positive outlook for Apple Inc. (NASDAQ:AAPL), increasing the target stock price for the company’s at $900 per share with a “buy” rating.

Jefferies: Apple TV & iPad Mini Now In Production, New $900 Target

Mizek said Apple’s iPad Mini and iTV are now in full production. The Cupertino-based technology giant aims to launch the smaller and more affordable version of its iPad by the end of the year. Based on the Iatest IHS iSuppli survey, Apple Inc. (NASDAQ:AAPL) holds the largest share in the iPad market during the second quarter of the fiscal year, with 17 million shipments, up by 44 percent, compared with its 11.8 million units shipped during the previous quarter.

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According to Mizek, Hon Hai Precision Industry is the main manufacturer of the iPad Mini and iPad for Apple Inc. (NASDAQ:AAPL). The iPad manufacturer’s revenue increased by 5 percent in July, compared with revenue a month earlier. The company is expected to produce a total of 25 million to 30 million units for the third and fourth quarter of 2012. The previous estimate was 16 million to 18 million (iPad Mini is not included).

Mizek also believes the Apple TV is in full production. Data from Sharp, Hon Hai, and other TV component suppliers support his assumption. He also noted a statement from JDS Uniphase Corp (Nadaq:JDSU), a company engaged in providing communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipments manufacturers, that it has a new non-gaming customer for its gesture control modules, describing it as a new “living room” based customer. The JDS description indicates its new customer is Apple.

The Wall Street Journal previously reported that Apple Inc. (NASDAQ:AAPL) is negotiating with cable TV operators to use the iTV as a set-top-box for live television and other content. Mizek said, “We believe Apple will leverage AT&T Inc. (NYSE:T) and Verizon Communications (NYSE:VZ) content deals for iTV.”

Other analysts believe, Apple’s move to team up with cable operators to enter the television market is less radical. Samsung and TiVO Inc. (NASDAQ:TIVO) are already selling set-top boxes without significant impact in the market.

The stock price of Apple Inc. (NASDAQ:AAPL) is up by 1.36 percent to $645 per share as of Friday, August 17 (12:46 PM, EDT).