Apple was added to Goldman Sachs conviction buy list today. Company analysts believe Apple will do well when it launches its third-generation iPhone later this year. Sales of the popular phone are expected to sell better than Apple sale projections. The company has set its sales goal of iPhones at 10 million units this year.
Analyst David Bailey raised his target on the stock from $185 a share to $220. Bailey believes Apple will be able to expand its subscriber base by 80% because of international sales. This year Apple has aggressively opened new markets.
“We continue to expect Apple to beat its 10 million unit goal for calendar year 2008 driven by broader global distribution and the availability of third-party applications, which should keep Apple well ahead of the competition,” Bailey wrote in a note dated May 22.
Bailey predicts that iPhone shipments will increase to 11 million units this year. Last year Apple sold 3.7 million iPhones.
In the last three months, Apple stock has been up 42%. In late morning trading, Apple stock was selling for around $180.50.