Apple Inc. (AAPL)

Deutsche Bank reiterates buy

Apple Inc. beat Wall Street expectations for the latest quarter on strong laptop and iPhone sales.

Apple is “one of the few tech companies to grow through the economic downturn,” noted Chris Whitmore of Deutsche Bank in a July 22 note to investors.

Apple said on July 21 that for the three months ended in June, its sales climbed 12% to $8.34 billion. Earnings jumped 15% to $1.23 billion, or $1.35 per share.

Analysts had predicted earnings of $1.17 per share on sales of $8.2 billion, according to a Thomson Reuters survey.

Apple sold seven times as many iPhones than it did in the same quarter last year — more than 5.2 million. Sales of Mac computers were up 4%. Furthermore, a 13% rise in laptop sales offset a 10% decline for desktops.

Apple’s projections for the quarter ending in September were more cautious. It expects earnings of $1.18 to $1.23 per share and revenue of $8.7 billion to $8.9 billion. Analysts project income of $1.30 per share on revenue of $9.1 billion.

Apple is typically conservative in its estimates, however. “We remind investors of Apple’s track record of beating its own guidance,” Whitmore said. He raised his price target to $225 from $150 and reiterated a “Buy” rating.

Starbucks Corp. (SBUX)

Oppenheimer reiterates outperform

Oppenheimer analyst Matthew DiFrisco said on July 22 that the company’s third quarter earnings of 24 cents per share beat his, and the Wall Street consensus , view of 19 cents on better margins and higher revenues. DiFrisco said that right-sizing the cost structure, the closure of underperforming stores, and more efficient procurement practices continue to exceed initial restructuring goals. The analyst noted that the sales momentum throughout the third quarter bucked the trend being reported by the majority of restaurants.

DiFrisco has more confidence that gradual improvements in the company’s same-store sales trends and tangible cost savings should drive earnings per share growth. He raised his fiscal 2009 (ending September) earnings estimate from 72 cents per share to 77 cents, and sees earnings of 95 cents per share in fiscal 2010. He has a $22 price target on the shares.

Sybase Inc. (SY)

Jefferies & Co. upgrades to buy from hold

Sybase Inc. may be able to beat its own estimates, Jefferies & Co. analyst Ross MacMillan said on July 22, a day after the maker of business software boosted its profit outlook for the rest of the year.

MacMillan, in a note to investors, said the company’s guidance assuages his concern over a slowdown in Sybase’s key database business, while its messaging service seems posed to “turn the corner.”

Additionally, he said, Sybase’s plan to aggressively ramp up spending on personnel and new investments may proceed more slowly than his estimates reflect.

“The implied ramp in (operating expenses in the second half of 2009) seems aggressive even the face of new investments and headcount additions,” he wrote. “We therefore also see scope for an earnings surprise if the company does not increase costs as much as we have modeled.”

He boosted his rating to “Buy” from “Hold” and hiked his price target on the stock to $41 from $34.

On July 21, Sybase said it earned $37.6 million, or 43 cents per share, up 26% from a year ago. Excluding one-time items, profit was $49.4 million, or 56 cents per share, topping the forecast of analysts polled by Thomson Reuters by 4 cents a share.

The Dublin, Calif., company also raised its earnings guidance for the year to $1.67 to $1.71 per share, with adjusted profit expectations within a range of $2.23 to $2.27 per share.

MacMillan hiked his own profit estimates, which exclude special charges, to $2.27 per share this year. Wall Street analysts expect earnings of $2.25 a share in 2009.