Apple Profit View Raised at Susquehanna

Susquehanna Financial has raised its profit estimates of Apple (NASDAQ: AAPL), saying that the technology giant is well positioned with leading market share in two of the fastest-growing segments in technology: smartphones and tablets.

The brokerage raised its fiscal 2011 profit forecast to $25.11 a share from $25.02 a share. Wall Street expects Apple to earn $24.72 a share for fiscal 2011, according to analysts polled by Thomson Reuters.

Analyst Jeffrey Fidacaro expects increased operational leverage in Apple's model as volumes expand. Apple has compelling products in fast-growing markets, a defensible and sticky ecosystem, economies of scale and global distribution.

When we assess Apple's competitors across all four categories of this framework, we believe Apple has a clear competitive advantage, Fidacaro wrote in a note to clients.

In addition, the analyst sees Apple to hold or gain share in the estimated 30 percent annual growth smartphone market despite the increased competition from Android. He also expects Apple to hold a leading share in tablets.

We highlight Apple as a Best Idea as we believe investors are underestimating the company's long-term growth and margin profile at current valuation levels, the analyst said.

Fidacaro has a positive rating and $465 price target on Apple stock.

Shares of Apple were currently trading at at $346.33, up 82 cents at Nasdaq.