EFTA00648476.pdf

From: Jeffrey epstein <jeevacation@gmail.com> To: "Barrett, Paul S" Subject: Re: Apple Inc. : Stock Radar: Expect More Appreciation Potential in Shares of Apple as iPhone and iPad Soar; Lifting Dec-11 Price Target to $450 Date: Tue, 25 Jan 2011 15:57:42 +0000 Ok Sorry for all the typos .Sent from my iPhone On Jan 25, 2011, at 4:51 PM, "Barrett, Paul S" > wrote: Will do it via a total return swap. 53 weeks. Rather keep the cash for higher yielding things. Also Palladium is down 3% today at $786/oz. We believe that the continued strength in the auto market will drive prices towards $1000. Risk is aggressive monetary tightening in Asia and EM. Let's keep this on the radar as I would like to build a small position. NDA on this Digital Growth Fund should be ready later today. Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group 7PMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 From: Jeffrey epstein [mailto:jeevacation@gmail.com) Sent Tuesday, January 25, 2011 10:45 AM To: Barrett, Paul EFTA00648476 Subject: Re: Apple Inc. : Stodc Radar: Expect More Appreciation Potential in Shares of Apple as iPhone and iPad Soar; Lifting Dec-11 Price Target to $450 Ok Sorry for all the typos .Sent from my iPhone On Jan 25, 2011, at 4:39 PM, "Barrett, Paul 5" Jeffrey I think we should buy $3MM worth of AAPL. We raised our px target to $450.00. Paul Barrett, CFA Managing Director Global Investment Opportunities Group 1PMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 Wrote: From: Sent: Tuesday, January 25, 2011 10:14 AM To: Barrett, Paul S Subject: Apple Inc. : Stock Radar: Expect More Appreciation Potential in Shares of Apple as iPhone and iPad Soar; Lifting Dec- 11 Price Target to $450 MorganMarkets Research Email Alertc, <image001.png> You are receiving this email because you requested the following J.P. Morgan Research using the MorganMarketsAdhoe email feature. This is not a subscription and will not cause any other emails to be sent to you. <spacer.gif> <image001.png> Headline: Apple Inc. : Stock Radar: Expect More Appreciation Potential In <image001.png> Shares of Apple as (Phone and IPad Soar Lifting Dee-11 Price Target <image001.png> to 545Q EFTA00648477 <image001.png>Author(s): Mark Moskowitz. Anthony Luscii, Mike Kim <image00 l.png> Abstract: <image00 l.png> • Shares of Overweight-rated Apple should exhibit upward momentum following the strong F1011 results. While the news of CEO Steve Jobs taking another medical leave could inject some uncertainty into Apple shares, we believe that the strong print-and- guide should begin to refocus Investors on Apple's unrivaled growth story and its staying power. Apple is one of our top picks for 2011. • Expected stock movement: going up. We are lifting our Dec-11 price target to $450 from $420. The below-mentioned 'scorecard' and "recommended homework" indicate that investor sentiment stands to drive a positive valuation re-rating. particularly as we expect Apple's growth profile to be unrivaled in large cap tech. Drivers include Apple's break-out performances in Phone. Pad. and Asia-Pacific. • Results recap: Apple posts strong F1011 results. Apple beat our above-consensus revenue and EPS estimates. We had previewed the prospects of the iPhone and iPad delivering significant upside for the December quarter in our "pre-earnings radar" report. The company more than delivered. We are lifting our estimates and expect a series of number hikes. We expect the iPhone. iPad. and Mac to drive above-peer growth over the next 2-3<image°01.1mg> years. • Bulls vs. Bears scorecard: Bulls win again. Apple's results and guidance continue to exhibit upside momentum. Unit shipments of iPhones and iPads came in well above expectations. In particular. iPhone and iPad units of 16.2M and 7.3M beat consensus estimates of 15.5M and 6.9M. Asia-Pacific stood out as a major contributor as Mac revenue in the region increased 67% YoY and iPhone revenues more than doubled. Overall. Asia-Pacific revenues increased 175% YoY. Gross margins also impressed at 38.5%. • Recommended homework. We expect investors to focus on Apple's ability to return gross margins to the 39.40% threshold over time. Also. investors stand to evaluate the sustainability of Apple's early lead in the tablet market relative to competitive tablet offerings expected late this year. Lastly. expected iPhone momentum at Verizon will be an important topic, as well as Apple's ongoing penetration of the 'Target Zone" of the PC market internationally. which we believe is just getting started. <image001.png>Link: huos:,,mm.jorsrgan.coin+PubScrvicilaction=cmail&doc=6PS-532.380-0 <image00 l.pnp If you wish to change your J.P. Morgan Email Alert preferences HI* here or unsubscribe laggSkinnroan rniniMt, ege=my alerts. MorganMarkets. J.P. Morgan's research and market data portal, provides a single point of access to the firm's award-winning research across all asset classes. plus analytics. market data and proprietary tools. With MorganMarkets. you will have 24/7 access to the actionable ideas. strategy recommendations and analysis that truly distinguish J.P. Morgan as the leader in investment research. 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