UPDATE: Nomura Reiterates on Apple Following New iPad Announcement

In a report published Wednesday, Nomura analyst Stuart Jeffrey reiterated a Neutral rating on

, and raised the price target from $480.00 to $513.00. In the report, Nomura noted, “Apple announced a new 9.7” iPad, as expected, and a new iPad mini with Retina screen (a positive, as screen availability was uncertain). Despite this, we have cut iPad estimates to reflect slight delays between announcement and launch; possible component shortages for iPad mini Retina screens; disappointingly high price points; and a lack of additional functionality to tempt users into abandoning laptops in favor of iPads. Initial reports suggest that the 5s is outselling the 5c by a factor of 2 or 3, in contrast with the 50:50 mix that initial manufacturing orders implied. We have thus increased our 5s estimates in Apple's fiscal Q1, boosting units, ASPs, and gross margins. If we factor in the announced share buyback and use a large-cap tech average P/E multiple of 11.6x 2014E EPS, we derive fair value of $513. We believe that high price points will eventually suffocate growth in developed markets and threaten Apple's relevance in emerging markets.” Apple closed on Tuesday at $519.95.