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Renewed confidence in Apple management puts Barclays 'back on board,' sees shares reaching $110

post #1 of 21
Thread Starter 
Though Barclays has been bearish on Apple stock since February, the investment firm changed its tune on Monday with a newly reestablished "overweight" rating alongside a new price target of $110 per share.


The New York Stock Exchange, credit Carlos Delgado via Wikipedia.


Analyst Ben A. Reitzes said in a note to investors, a copy of which was obtained by AppleInsider, that he's "back on board" with Apple thanks in part to renewed confidence in the company's management. Previously, he had held a $95 price target, and expressed concern that Apple could be hurt by lack of growth from a maturing smartphone market.

"We believe Tim Cook has solidified his strategy and re-gained the confidence of Apple stakeholders in many ways -- reversing many of the warning signs we saw earlier in the year," Reitzes wrote on Monday.

In addition, he cited weakness from key rival Samsung as a "large unforeseen buffer" that could aid Apple moving forward. Reitzes also cited checks with supply chain sources indicating very "strong" expectations for the company's anticipated new products moving into 2015.




In the shorter term, Reitzes noted that iPhone sales have been strong, thanks to unexpectedly large growth from international markets. The analyst also expressed satisfaction with the company's management, noting that Apple pulled off its transition to a new chief financial officer "seamlessly."

For the just-concluded June quarter, he predicts that Apple sold 37 million units, up from his earlier prediction of 35 million. He expects the company to report $38.33 billion in revenues, higher than market consensus of $37.85 billion.

For fiscal 2014, Reitzes believes total iPhone sales will grow 14 percent year over year to 172 million. And looking to next year, he sees growth of 15 percent to 197 million iPhones.

Barclays was the second major firm to upgrade its AAPL price target to $110 on Monday, as Morgan Stanley also issued a forecast at that price. If shares of AAPL were to reach that level, it would blow past the company's all-time high of just over $100 per share. As of Monday morning, AAPL is trading at above $96 per share.
post #2 of 21

“Renewed” by what, idiots? What “warning signs”? What “newfound confidence”? Nothing has changed, you pathetic hacks.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #3 of 21
Quote:
Originally Posted by Tallest Skil View Post

“Renewed” by what, idiots? What “warning signs”? What “newfound confidence”? Nothing has changed, you pathetic hacks.
Just like nothing changed when they ran the stock up to $700 and then started dumping it because the little pussies got scared of Samsung. 1rolleyes.gif
post #4 of 21

Buy when you think there's value there. When the stock comes around (hopefully), sell and take some money off the table.

 

In other words, buy low, sell high.

post #5 of 21
The only people who "lost confidence" were the bankers who manipulate Apple stock on a daily basis for their own greed and profit. These are the same investment bankers and analysts who have destroyed the economy in conjunction with the Federal Reserve.
post #6 of 21
Another $110 price target, eh? Analysts copying each other's homework, or just this week's pump and dump?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

Reply
post #7 of 21
Quote:
Originally Posted by Tallest Skil View Post
 

“Renewed” by what, idiots? What “warning signs”? What “newfound confidence”? Nothing has changed, you pathetic hacks.

Ditto

post #8 of 21

HAHAH HA HA!!

Oh, that was great. I'll give the guy some props for owning-up. It's more than most of these analysts would do. (big plate of tasty crow; right on live TV)

post #9 of 21
I don't understand how opinions of a stock can manipulate it so quickly when it takes many months before a change to actually take affect in these large companies. Even if we were in an alternate universe, one where Cook was Ballmer-ish, apple would be able to survive a long long time before becoming insolvent. This type of behaviour should be illegal.

I don't even want to read this tripe but it's almost impossible not too. It's like reality show that you flip by and end up watching for 15 min all the while sitting there amazed that there are people like this. And it's getting worse... hell I can now even read analysts opinions on the supply chain/production issues/demand/etc of a device that only exists as a rumour from those vary analysts. It's just as shocking as the late night dating show I saw last night called (insert name here).
post #10 of 21
Most investors didn't lose confidence, douchebag. Nothing has changed in five months. How you still have a job is amazing to me.
post #11 of 21
Quote:
Originally Posted by Tallest Skil View Post
 

“Renewed” by what, idiots? What “warning signs”? What “newfound confidence”? Nothing has changed, you pathetic hacks.

Is it possible the articles published by the Wall Street Journal and New York Times probably gave hime "newfound confidence"? /s  :-)))

post #12 of 21
Quote:
Originally Posted by BobSchlob View Post

HAHAH HA HA!!
Oh, that was great. I'll give the guy some props for owning-up. It's more than most of these analysts would do. (big plate of tasty crow; right on live TV)

Eating crow like a Thenn
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #13 of 21
It is pretty clear from Apple's execution that little has changed. The announced strategy for the last 18 months continues and suddenly market sentiment has changed. The analysts are clearly following the trends on the stock, going up and going down, with the intent to show they have a clue what Apple's business is and how the market will react to it.

The real predictive evidence from Apple stock analysts is almost entirely lacking and the stock market "wisdom" is deeply flawed. A model of stock value based on the market is akin to popularity ups and downs of movie stars.

Their ability to cherry pick data to justify their guesses and provide a narrative about the past borders on fiction or perhaps astrology.
post #14 of 21
Quote:
Originally Posted by Tallest Skil View Post
 

“Renewed” by what, idiots? What “warning signs”? What “newfound confidence”? Nothing has changed, you pathetic hacks.

 

To be fair something very important did change.

 

EARNINGS GROWTH.

 

We went from negative 10% EPS to positive 15% the last 9 months.  That is HUGE.

post #15 of 21
Quote:
Originally Posted by Tallest Skil View Post

“Renewed” by what, idiots? What “warning signs”? What “newfound confidence”? Nothing has changed, you pathetic hacks.

Exactly. Too arrogant to just admit that he was wrong all along about Tim Cook. Saying that would actually raise his credibility and earn some respect.
post #16 of 21
Quote:
Originally Posted by geoffrobinson View Post

Buy when you think there's value there. When the stock comes around (hopefully), sell and take some money off the table.

In other words, buy low, sell high.

And take advantage of the fact most (all?) analysts get it wrong again and again. Someone who follows just one company very closely along with developments by other companies that effect that one company, plus the markets and technology landscape within which that one company operates, can easy outperform the most accurate recommendations of the best analysts, who, by the nature of their jobs, must spread their time and energy across a number of companies and markets. This is what I do and I can attest, I make much more money than I would listening to these folks.
I have enough money to last the rest of my life. Unless I buy something. - Jackie Mason
Never own anything that poops. - RadarTheKat
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I have enough money to last the rest of my life. Unless I buy something. - Jackie Mason
Never own anything that poops. - RadarTheKat
Reply
post #17 of 21
Quote:
Originally Posted by scotty321 View Post

The only people who "lost confidence" were the bankers who manipulate Apple stock on a daily basis for their own greed and profit. These are the same investment bankers and analysts who have destroyed the economy in conjunction with the Federal Reserve.

Speak the truth brother. Speak the truth!
post #18 of 21
These guys are just in their own echo chamber. But that's what we have been used to for some time - much heat, little light.

It would be better if they'd described their detailed, rational analysis.
post #19 of 21
Quote:
Originally Posted by sog35 View Post

To be fair something very important did change.

EARNINGS GROWTH.

We went from negative 10% EPS to positive 15% the last 9 months.  That is HUGE.

EPS growth is not the same as earnings growth. They did a stock buyback so reducing the shares increases the EPS even when the E is unchanged. Their earnings (revenue, net income) are almost unchanged since last year.

When investment banks say things like the management is doing better, they couldn't care less about how they are doing as a company and don't even know how it's being run; it's about returns on their investment, which requires constant growth or high dividends. If Apple stops growing, investment banks can easily downgrade them but they're still the most successful company in the world so their opinion of Apple is down to how they impact their investment, which is irrelevant to everyone else except them and yet they think everyone else should care about it.

I'm not saying Apple shouldn't do what's best for shareholders but to suggest the company is any more or less successful simply because they are acting more or less in the interests of shareholders is disingenuous.
post #20 of 21
Quote:
Originally Posted by Marvin View Post


EPS growth is not the same as earnings growth. They did a stock buyback so reducing the shares increases the EPS even when the E is unchanged. Their earnings (revenue, net income) are almost unchanged since last year.

When investment banks say things like the management is doing better, they couldn't care less about how they are doing as a company and don't even know how it's being run; it's about returns on their investment, which requires constant growth or high dividends. If Apple stops growing, investment banks can easily downgrade them but they're still the most successful company in the world so their opinion of Apple is down to how they impact their investment, which is irrelevant to everyone else except them and yet they think everyone else should care about it.

I'm not saying Apple shouldn't do what's best for shareholders but to suggest the company is any more or less successful simply because they are acting more or less in the interests of shareholders is disingenuous.

 

Wrong Grasshooper.

 

Apple has been trending to growing EPS and Net Income.

 

Q3-2013 they reported $6.9B in profits.  Down 22% from Q3-2012

 

Q1-2014 they reported $13.1B in profits.  Flat from Q1-2013 but they stopped the trend of shrinking profits.  Plus they would have showed earnings growth if it wasn't for the very conservative accruals for warranty expense and free software.

 

Q2-2014 they reported $10.2B in profits.  This was 7% growth from Q2-2014 which was 9.5B.  Again without the very conservative accruals they would be at  10%+ profit growth.

 

The trend from earnings decay to earnings growth is the key reason why the stock turned around.

post #21 of 21

Do these people even care that you can command click on a titlebar icon and drill down to its location and that it's been like that for millions of years. No they do not, they do not love Apple. 

 

/Rmini

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