Wednesday, Credit Suisse (NYSE:CS) sent Barrons a note that expressed the firm’s belief that the technology industry has some areas for growth and that Apple (NASDAQ:AAPL) looks to be a big beneficiary of that growth.
Credit Suisse cited a proxy statement submitted by Dell (NASDAQ:DELL) to the Securities and Exchange Commission that the firm believed “highlights significant insights for the overall information-technology hardware market,” according to the note posted on Barron’s. The filing by Dell mentioned negative points of the IT market, but from it, Credit Suisse still thought some areas would come out okay.
Overall, IT spending is expected to decline, with revenue growth predicted to grow just 3 percent and margin pressures beginning to set in. However, Credit Suisse believes there smay be better growth in the tablet and data storage sections of the business.
Apple may not have a lot going on in storage, but it is undeniably strong when it comes to tablets. With both the iPad and iPad mini, Apple has a firm hold on the global tablet market. So the downturn in personal computer sales — which was precipitated by consumers’ increasing preference for mobile devices — has largely benefited Apple. That current trend technology spending is expected to continue as Credit Suisse believes tablet sales may reach over 400 million units per year in 2013 and account for 50 percent of computer sales…
Having a strong tablet segment is an important building block for Credit Suisse’s assessment of the company, but having a full suite of tech products made the impression stronger. With products to address the PC, tablet, and smartphone markets, Apple won’t be likely to miss out on increase in on area, and won’t be put at too much risk if one area takes sales away from another.
Credit Suisse expects earnings per share of $46.23 and $56.37 in 2013 and 2014, respectively, and maintains a price target of $600, giving it a top-pick position for the firm for the next 12 months. The faith in Apple despite the belt-tightening in IT could be a good sign for Apple and investors.
Don’t Miss: Are Drastic Changes Delaying iOS 7?