Tuesday, November 15, 2011

Apple: Don’t Be Bitter, Say Bulls, ’4S’ A Meaningful Upgrade

Street response is trickling in to Apple’s (AAPL) press event earlier today, during which time the company unveiled the “iPhone 4S,” featuring faster electronics and integrated natural language voice commands.

The debate this afternoon pivots around whether the new model is a disappointment, overall, or a useful upgrade to an already successful product.

As for the stock, Apple shares have staged a decent turnaround going into the close, now down $2.10, or 1%,at $372.50, up from the lowest level of the session of $354.24.

Piper Jaffray’s Gene Munster this afternoon reiterates an Overweight rating on Apple shares, writing that “the bottom line is that while investors may be disappointed by the lack of a redesigned iPhone, we believe the iPhone 4S will meet or exceed unit expectations, as it represents the first iPhone launch at two major US carriers (Verizon and Sprint) along with KDDI in Japan.”

Munster writes that based on a survey his firm conducted in August, there is pent-up demand for an iPhone refresh that should again lead to long lines for the 4S.

RW Baird’s William Power reiterates an Outperform rating on the stock, writing that “The iPhone 4S appears to be a solid product, with several meaningful upgrades, though there were no significant upside surprises.”

“While today’s launch may have proved a bit underwhelming relative to recently growing expectations, we continue to expect solid growth over the next couple of years and view valuation as attractive.”

Brian White of Ticonderoga Securities reiterates a Buy rating and a price target of $666, writing, “We would be buyers on any weakness today.”

White thinks the 4S’s “interesting new or enhanced features [��] should drive a healthy upgrade cycle.”

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