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UBS raises Apple price target to $700, expects significant user upgrades for 'iPhone 6'

post #1 of 40
Thread Starter 
UBS on Thursday became the latest financial firm to raise their price target for Apple, with a new 12-month forecast of $700 on what is expected to be a blockbuster launch for the next-generation iPhone.




Analyst Steven Milunovich issued a note to investors, a copy of which was provided to AppleInsider, revealing the price target increase from its previous level of $625. The new $700 target comes as Milunovich is increasingly confident that iPhone sales in the U.S. will be particularly strong for Apple's so-called "iPhone 6," expected to debut later this year.

The analyst cited survey data from YouGov.com that suggested more than half of all U.S. iPhone users are due for an upgrade over the next 10 months. As a result, Milunovich believes that a number of iPhone 4 and iPhone 4S owners skipped the iPhone 5 and iPhone 5s upgrade cycle, and may be holding out for Apple's next-generation model.

Apple's next iPhone is rumored to come with a larger screen in two sizes of 4.7 and 5.5 inches. Milunovich believes those phones, along with the potential for an Apple-built wearable device, are good reasons for investors to buy in to AAPL stock.

"Investor sentiment has been somewhat apathetic as reflected by two-thirds of funds owning Apple being underweight," he wrote. "That view may change starting next week."

Next week, of course, is Apple's Worldwide Developers Conference, where the company is expected to announce the next major updates to its iOS mobile operating system and OS X Mac platform. New iPhones are expected to follow later this year, likely around September.

The old UBS price target of $625 went underwater earlier this week as Apple eclipsed it. The higher $700 target from UBS also comes after Barclays increase their own price target to $655 on Wednesday.

Other prominent analysts tracked by Apple do remain underwater, including Maynard Um of Wells Fargo, who has a "valuation range" of between $515 and $585 for Apple, and Rod Hall of J.P. Morgan, who maintains an overweight rating with a target of $623. Shares of Apple are up again on Thursday as of early afternoon trading, as Wall Street appears to be warming up to
post #2 of 40

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. :lol: 

 

What would their market cap be if they did hit $700 after the split?

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
Reply
post #3 of 40
Quote:
Originally Posted by Tallest Skil View Post

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. lol.gif  

What would their market cap be if they did hit $700 after the split?

Wouldn't that be a nice early Christmas present?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #4 of 40
I believe the pent up demand. I just bought an iPhone 5S outright (using Straighttalk) and even I want to upgrade to the larger screen. Eyeballs are getting older, worldwide. This was long overdue!
post #5 of 40

Man this reminds me of 2012. Same pattern. When it does hit $700, I'm out for sure. Can't stand the stress of Apple's stock roller-coaster. 

post #6 of 40
There are a ton of us iPhone 4S users waiting for iPhone 6.
post #7 of 40
Originally Posted by Slurpy View Post
Can't stand the stress of Apple's stock roller-coaster. 

 

Apple stock purchases should come with a year’s supply of thorazine. It’s an “ignore me” stock, after all.

 

Set it and forget it!

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
Reply
post #8 of 40
Quote:
Originally Posted by Slurpy View Post

Man this reminds me of 2012. Same pattern. When it does hit $700, I'm out for sure. Can't stand the stress of Apple's stock roller-coaster. 

When it hits $700 for us, it'll be hitting $100 for others. It'll keep climbing at that point.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #9 of 40
Quote:
Originally Posted by Tallest Skil View Post

Apple stock purchases should come with a year’s supply of thorazine. It’s an “ignore me” stock, after all.



Set it and forget it!

The new Ronco Ear Rotisserie by Beats by Dre by Apple!

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #10 of 40
Most analysts have no clue at all.
 
Their failed and inaccurate predictions are proof of that.
 
Of course they had to raise their current prediction, since their old one is now underwater, and they'd look like complete idiots if they didn't play catch up and revise their numbers.
 
It'll be interesting to see what happens to AAPL after the split.
post #11 of 40

The analysts are worse than worthless. 

 

They're going to pump up APPL then try to bash it down.

 

I just wish there was more coverage about how all the nasty articles and doom and gloom prophecies about APPL were wrong.

 

About how the 5C is a success not a flop.

 

About how Apple continues to innovate.

 

About how literally the majority of analysts made outlandishly wrong and bad predictions about APPL, totally ignoring fundamentals.

post #12 of 40
Classic pump and Dump, here we go again
post #13 of 40

I was out of AAPL for a little while so wanted to hold a few more again. I just bought three shares cause I want to own 21 in a few weeks.  Yeah, if it does go to $700 the return will put me somewhere north of ecstatic. :lol:  Free drinks for everyone here if that happens within one year. 

post #14 of 40
Quote:
Originally Posted by Tallest Skil View Post

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. lol.gif  

What would their market cap be if they did hit $700 after the split?
post #15 of 40
Quote:
Originally Posted by Tallest Skil View Post
 

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. :lol: 

 

What would their market cap be if they did hit $700 after the split?

Shhh.... don't tell the analysts that.  Eat popcorn and sit back. :)

post #16 of 40
Quote:
Originally Posted by Tallest Skil View Post

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. lol.gif  

What would their market cap be if they did hit $700 after the split?

I am thinking that this respond ant was still thinking if the Apple pre-split price, a natural mistake. Take care.

Ed
post #17 of 40
Quote:
Originally Posted by Tallest Skil View Post

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. lol.gif  

What would their market cap be if they did hit $700 after the split?

861.38 million shares x $631.52 = $544.01 billion for the current market cap.

$631.52 ÷ 7 = $90.22 per share after the split.

$700 ÷ $90.22 = 7.76 times the current value to reach $700 per share.

7.76 x $554.01 B = 4.22 trillion for that market cap.


PS: To become a trillion dollar company the stock price, post split, will need to be about $165 per share.

Quote:
Originally Posted by Future Man View Post

I am thinking that this respond ant was still thinking if the Apple pre-split price, a natural mistake.

Until the split happens all values, even future ones, should be indicated based on what how the stock is measured today.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #18 of 40
Quote:
Originally Posted by SolipsismX View Post

861.38 million shares x $631.52 = $544.01 billion for the current market cap.

$631.52 ÷ 7 = $90.22 per share after the split.

$700 ÷ $90.22 = 7.76 times the current value to reach $700 per share.

7.76 x $554.01 B = 4.22 trillion for that market cap.


PS: To become a trillion dollar company the stock price, post split, will need to be about $165 per share.

I think hitting $165 post-split is achievable.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #19 of 40
Quote:
Originally Posted by Tallest Skil View Post
 

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. :lol: 

 

What would their market cap be if they did hit $700 after the split?

The $700 price target would be adjusted after the split...so the actual call is it to be $100 in 12 months. They'll blow by that in 12 days! 

 

Not sure why they don't use that figure with a note...but I won't complain if we go back up to $700 in 1yr.

post #20 of 40
Quote:
Originally Posted by Tallest Skil View Post
 

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. :lol: 

 

It's a good example of how specious and arbitrary these analyst targets really are.  There's a 7-for-1 split on the horizon, and the easiest way for the analyst to rig his (or her) prediction is to make it an easy multiple of 7.  Said analyst is already befuddled because AAPL has exceeded their 560 forecast, and the next big, round number is 700.  So let's predict that. Yeah, that's the ticket.

post #21 of 40

I am hoping it drop to about 60-70 after the split, I will add another 400 share at that price point.....

post #22 of 40
Quote:
Originally Posted by Slurpy View Post
 

Man this reminds me of 2012. Same pattern. When it does hit $700, I'm out for sure. Can't stand the stress of Apple's stock roller-coaster. 

I plan to take 20% of my AAPL off the table, take the tax bite (20%!), and leave the cash there for if/when the price somehow gets to below (pre-split) $560.

 

I am sure a lot of people have a psychological (pre-split) $700 price point for whole or partial sale, so I am guessing that it'll be stuck at that level for a good while because of the selling pressure.

post #23 of 40

My what a difference a single quarter makes. Before the last quarterly results Apple was declared dead, over, finished, irrelevant. The iPhone was a has-been. The stock was stuck. Then Q2 blew it all away. Bwha? Apple is still selling iPhones and more than ever too? Now suddenly it’s hard to find an analyst who will bash the stock and they’re all raising their estimates. Who’da thunk it?

post #24 of 40
So WHAT HAS BEEN THESE LOST 2 YEARS, VILLAIN ??????






post #25 of 40
Quote:
Originally Posted by CarlosJk View Post
 

I am hoping it drop to about 60-70 after the split, I will add another 400 share at that price point.....

 

You will be waiting for a very long time.

 

$420-$490 per share is long gone. (60-70 split adjusted)

 

If you want to buy you need to buy now.  We will run to $750-$800 this year ($107/$114 split adjusted)

post #26 of 40
Quote:
Originally Posted by dnd0ps View Post

Classic pump and Dump, here we go again

 

not really.

 

The stock went down in late 2012 and early 2013 because profits growth slowed down big time.  Profit growth went from 80%+ to negative 10%.  Gross margins were also falling from 50% to 39%.  You need to understand a ton of money in Apple was growth investors.  It was a painful transition from growth investors to value/income investors.  It took almost 12 months.

 

The stock recovered mid 2013 because of buybacks/dividend and profit growth was stablized.

 

Finally in Dec2013 and Mar2014 quarters Apple showed profit growth.

Also increased buyback and the promise of new products.

 

I bought my first Apple shares in Nov 2012 at $590.  The last year and a half I've been buying more and at this point my average cost is $530.  Several times I was tempted to sell at a lost.  But I knew if Apple grew profits again it would recover.

post #27 of 40
Quote:
Originally Posted by HAMETA View Post

So WHAT HAS BEEN THESE LOST 2 YEARS, VILLAIN ??????

 

Love it.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #28 of 40
Hilarious. Raise targets when it's already on the way up, drop them when it's already on the way down.

Why are we hanging around this board? We could all be analysts.
post #29 of 40
Quote:
Originally Posted by SpamSandwich View Post


I think hitting $165 post-split is achievable.

 

In a fair world, it would be.

 

I know we're all just predicting, but what's your timeline for that? 

post #30 of 40
Quote:
Originally Posted by jakeb View Post

 

In a fair world, it would be.

 

I know we're all just predicting, but what's your timeline for that? 

You would seriously believe any answer to that question? By anyone?

post #31 of 40
Quote:
Originally Posted by SpamSandwich View Post

Love it.

Hate it! His ostentatious, spastic, attention-seeking comments are to a forum what 2 Girls 1 Cup is to cinema.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #32 of 40
Quote:
Originally Posted by SolipsismX View Post


Hate it! His ostentatious, spastic, attention-seeking comments are to a forum what 2 Girls 1 Cup is to cinema.

 

LOL! I have him blocked, but check out his posts just for a good laugh.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #33 of 40
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post #34 of 40
Quote:
Originally Posted by anantksundaram View Post
 

You would seriously believe any answer to that question? By anyone?

 

I don't believe much of anything when it comes to stocks, but I like to hear the reasoning behind people's predictions. 

post #35 of 40
Quote:
Originally Posted by jakeb View Post

 

I don't believe much of anything when it comes to stocks, but I like to hear the reasoning behind people's predictions. 

I don't mean to burst your bubble or come through as being snarky in the least, but anyone -- anyone -- who tells you "what" and "when" at the same time vis-a-vis stock prices, given the known state of finance theory and forecasting, is either clueless or lying.

 

Short of astrology or some such thing, nothing in known economics enables them to do so!

post #36 of 40

I think $350. in 3 years is achievable if everything in the pipeline comes to fruition.:lol:

post #37 of 40
Quote:
Originally Posted by Dave K. View Post

There are a ton of us iPhone 4S users waiting for iPhone 6.

A ton sounds about right; you're a dying breed.
"If the young are not initiated into the village, they will burn it down just to feel its warmth."
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"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
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post #38 of 40
Quote:
Originally Posted by Apple ][ View Post








AAPL shares will plummet after the split and be worth a seventh of what they were.
"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
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"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
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post #39 of 40
Quote:
Originally Posted by SolipsismX View Post

Quote:
Originally Posted by Tallest Skil View Post

$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days. lol.gif  

What would their market cap be if they did hit $700 after the split?

861.38 million shares x $631.52 = $544.01 billion for the current market cap.

$631.52 ÷ 7 = $90.22 per share after the split.

$700 ÷ $90.22 = 7.76 times the current value to reach $700 per share.

7.76 x $554.01 B = 4.22 trillion for that market cap.


PS: To become a trillion dollar company the stock price, post split, will need to be about $165 per share.

Quote:
Originally Posted by Future Man View Post

I am thinking that this respond ant was still thinking if the Apple pre-split price, a natural mistake.

Until the split happens all values, even future ones, should be indicated based on what how the stock is measured today.

Hah! My off the head calculation was €4.2 T, so I wasn't far off.

Of course, in theory, Apple could split the stock, and the first day of the new price, the stock could surge by seven times, taking it back up to $700! The probability is effectively zero, but in one universe, it no doubt happens, for those who believe in infinite universes.
"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
Reply
"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
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post #40 of 40
Quote:
Originally Posted by SpamSandwich View Post

Quote:
Originally Posted by SolipsismX View Post

861.38 million shares x $631.52 = $544.01 billion for the current market cap.

$631.52 ÷ 7 = $90.22 per share after the split.

$700 ÷ $90.22 = 7.76 times the current value to reach $700 per share.

7.76 x $554.01 B = 4.22 trillion for that market cap.


PS: To become a trillion dollar company the stock price, post split, will need to be about $165 per share.

I think hitting $165 post-split is achievable.

Of course it's achievable; the question is—when? I bet May 2015, TS bets June 2015.
"If the young are not initiated into the village, they will burn it down just to feel its warmth."
- African proverb
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"If the young are not initiated into the village, they will burn it down just to feel its warmth."
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