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Piper Jaffray ups Apple price target to $120 with high hopes for iOS 8 home & health features

post #1 of 30
Thread Starter 
With the inclusion of HomeKit and HealthKit in Apple's forthcoming iOS 8, as well as rumors of a new 'iPhone 6' mobile payment system, investment firm Piper Jaffray has increased its price target on the company's stock to $120.




Apple's "platform theme is expanding," analyst Gene Munster said in a note to investors on Tuesday, a copy of which was provided to AppleInsider. In addition to HomeKit, HealthKit and the prospect for mobile payments, he also sees the anticipated "iWatch" as opening up new opportunities for Apple to become a more ingrained part of users' everyday lives.

HomeKit and HealthKit are new developer tools found in Apple's iOS 8 mobile operating system that will allow third-party devices and accessories to integrate more closely with the iPhone and iPad. It's expected that these additions will drive new interest in smart home gear as well as fitness tracking and health-oriented devices, including wearable electronics.

The new price target, up from a previous prediction of $105, comes a week before Apple's Sept. 9 event, where the company is widely expected to show off its upcoming "iPhone 6," as well as provide a first look at the rumored "iWatch."

For initial "iPhone 6" sales, Munster said a comparison to last year -- when the company sold 9 million total units in its launch weekend -- is difficult. That's because Apple launched two new iPhone models last year: the flagship iPhone 5s, and the mid-tier iPhone 5c, which was essentially a revised iPhone 5 with colorful plastic backs.



This year, the company is expected to launch the "iPhone 6" in two screen sizes of 4.7 inches and 5.5 inches. There have not been any concrete rumors to suggest, however, that the plastic-backed lineup will live on at the $100 subsidized price point, and there have even been rumors that the company plans to entirely scrap the iPhone 5c.

Regardless, Munster said there's likely to be "noise in the opening weekend" of sales of Apple's next iPhone, which he advised investors to ignore given difficult comparisons to last year.

"While the opening weekend may prove to be a speed bump to shares, we expect additional product launches and the platform theme to move shares higher through year-end," Munster said.

Finally, as for the "iWatch," Munster remains hopeful that it will hit store shelves this fall, in time for the lucrative holiday shopping season. His expectations, however, contrast with recent rumors suggesting that while the company plans to showcase its new wearable device next week, it won't actually hit the market until early 2015.
post #2 of 30
I'm sure there will be plenty of people who will love HomeKit enabled products (especially as the population ages, it will give people a chance to remotely monitor their aging parents), but there's really nothing in it for apartment dwellers...maybe some low-level security and light functions?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

Reply
post #3 of 30

Munster still peddling the Apple stuffed the channel with 5c's on launch weekend nonsense.

post #4 of 30
Gene got his ass handed to him on a plate last year when he missed initial sales estimates! This year he's choosing not to make a guess because it would confirm how much of an idiot he truly is.
post #5 of 30
Gene Munster... queue circus clown music please.
post #6 of 30

I'd love it if Apple released their new 50" Apple TV this year, surely the first year in living memory that Gene Munster hasn't predicted it.

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post #7 of 30
Quote:
Originally Posted by AppleInsider View Post

Apple’s “platform theme is expanding,” analyst Gene Munster said in a note to investors on Tuesday...

 

What scares me is that some people actually listen to guys like this when making an investment decision. After following AAPL closely for tears it has made me very aware of how analysts attempt to manipulate stock prices. I’m sure AAPL is not the only stock they do this to. And they are always careful to avoid legal responsibility for their analyses. 

post #8 of 30
No matter what Apple release, investors and writers on bias tech websites will still insist what ever samsung release will become an iPhone killer or iWatch killer, even if the iWatch has a revolutionary design and can track various vital signs and do things nothing on the market can.

You heard it here first folks.
post #9 of 30
Listen to your own common sense and your gut about Apple and APPL. Do not listen to Gene Munster.
post #10 of 30
Quote:
Originally Posted by lkrupp View Post
 

 

What scares me is that some people actually listen to guys like this when making an investment decision. After following AAPL closely for tears it has made me very aware of how analysts attempt to manipulate stock prices. I’m sure AAPL is not the only stock they do this to. And they are always careful to avoid legal responsibility for their analyses. 

You're new to investing, I take it?

 

Yes, other companies are covered by analysts as well, typically by different people if the company in question is a different industry. Guys like Munster will cover a selection of companies, typically in the same industry as the analyst purportedly is knowledgable about that specific industry.

 

A guy like Munster wouldn't be covering oil & gas stocks like Chevron or ExxonMobil, or grocery stocks like Whole Foods Market, or banks like WellsFargo.

 

There are multiple analysts covering every single Dow, S&P 500, NASDAQ 100, Russell 1000 and Russell 2000 company. It's not just Apple who gets analyzed. 

 

There are services that rate analyst performance (e.g., StarMine) relative to their peers in the same industry. StarMine uses a 1-5 star rating. Those with 4 or 5 stars are in the top 20-30% (I forget). The 1-2 star analysts are in the same curve at the bottom. Munster himself has had a consistently low StarMine rating over the years.


Edited by mpantone - 9/2/14 at 8:35am
post #11 of 30
I agree, 1 year price target 120+. I an long apple and I agree that Munster doesn't seem to know anything.

As long as Apple remains a media favorite, there is no stopping them. if the remain consumer focused and stay in the premium edge of the market, I think they will be more than ok.

Applr at $150 would be far more in-line with other tech companies on a p/E basis but I also think those others (like tesla and amazon) seem like overly optimistic valuations unless you are measuring a decade away.
post #12 of 30
Quote:
Originally Posted by Crowley View Post

I'd love it if Apple released their new 50" Apple TV this year, surely the first year in living memory that Gene Munster hasn't predicted it.

LOL

It's not what you said -- it's the way you said it!
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #13 of 30
Gene Munster blah blah blah Apple HDTV blah blah blah who cares what he says. Stock hopefully isn't up today mostly on this price target upgrade.
Quote:
Originally Posted by Crowley View Post

I'd love it if Apple released their new 50" Apple TV this year, surely the first year in living memory that Gene Munster hasn't predicted it.
I wholly concur.
You can't spell appeal without Apple.
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You can't spell appeal without Apple.
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post #14 of 30
With its cheap design and insulting Third World marketing schtick the 5C should never have seen the light of day. Bad idea poorly executed! $120 AAPL seems very achievable.
post #15 of 30
Then, there’s the story about the woodsman who made a living by walking through the forest cutting boughs off of trees.  Though he was thorough, the work made his hands rough and the sawdust gave him a cough … so he considered a career change.  After a drought, he bought a plough with the dough he’d made as a woodsman.
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
post #16 of 30
Quote:
Originally Posted by MJ Web View Post

With its cheap design and insulting Third World marketing schtick the 5C should never have seen the light of day.

:???:

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post #17 of 30
Originally Posted by SpamSandwich View Post
...but there’s really nothing in it for apartment dwellers...maybe some low-level security and light functions?

 

Apple again seeks to make the world a better place buy upselling people to houses.

 

Originally Posted by Crowley View Post
:???:


He thinks that because the phone was cheaper (it wasn’t) and its commercials featured people from around the world (just like all of Apple’s commercials) that it was marketed to the third world.


Edited by Tallest Skil - 9/2/14 at 10:13am

Originally Posted by helia

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

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 #18 of 30
Quote:
Originally Posted by SpamSandwich View Post

I'm sure there will be plenty of people who will love HomeKit enabled products (especially as the population ages, it will give people a chance to remotely monitor their aging parents), but there's really nothing in it for apartment dwellers...maybe some low-level security and light functions?

I would think that apartment dwellers could benefit from HomeKit thermostat/HVAC control to reduce the cost of gas and electric utilities.
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
post #19 of 30
Quote:
Originally Posted by Tallest Skil View Post

Apple again seeks to make the world a better place buy upsetting people to houses.
[quote/]

Fortunately, I'm not upset. 😃 But I would like to be able to use as many functions as will be available.

Dang it, what did I do wrong with the quote function?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #20 of 30
Quote:
Originally Posted by Dick Applebaum View Post


I would think that apartment dwellers could benefit from HomeKit thermostat/HVAC control to reduce the cost of gas and electric utilities.

Maybe, maybe not, it really depends on the individual unit. The smaller the unit, the less likely fancy thermostat controls (like the Nest) will have any long-term energy saving benefit.

 

I've mostly lived in 1-bedroom apartments and condos with baseboard electric heating and no A/C. I turn on the heat when the room I'm in is cold. The heater is turned off a half-hour before I leave or go to sleep. It's pretty easy to tell if any lights are still on when I step out. A fancy thermostat isn't going to save me any money.

 

Someone in a small unit like mine would be better off sinking the money into LED bulbs and an EnergyStar refrigerator.


Edited by mpantone - 9/2/14 at 10:25am
post #21 of 30
SOT

New Yosemite and Xcode6 has dropped.
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
post #22 of 30
Originally Posted by SpamSandwich View Post
Dang it, what did I do wrong with the quote function?

 

Huddler has to have the WORST quoting format I’ve ever seen. They apply a background color TO THE TEXT, for heaven’s sake.

Originally Posted by helia

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

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 #23 of 30
Quote:
Originally Posted by Dick Applebaum View Post

SOT

New Yosemite and Xcode6 has dropped.

Boom!

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #24 of 30
Gene Munster, savant extraordinaire. How the mighty have fallen...
post #25 of 30
Quote:
Originally Posted by Dick Applebaum View Post

Then, there’s the story about the woodsman who made a living by walking through the forest cutting boughs off of trees.  Though he was thorough, the work made his hands rough and the sawdust gave him a cough … so he considered a career change.  After a drought, he bought a plough with the dough he’d made as a woodsman.

 

And he lived in Scarborough. 😃

"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
Reply
post #26 of 30

Munster the Muffin.

"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
Reply
post #27 of 30
Originally Posted by Benjamin Frost View Post

And he lived in Scarborough. 😃


Fair enough.

Originally Posted by helia

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

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 #28 of 30
Quote:
Originally Posted by Tallest Skil View Post
 
Originally Posted by Benjamin Frost View Post

And he lived in Scarborough. 😃


Fair enough.

 

Ah-ha! I think you missed the little secret.

"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
Reply
post #29 of 30
Originally Posted by Benjamin Frost View Post

Ah-ha! I think you missed the little secret.

 

I must have PSRT, then.

Originally Posted by helia

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

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 #30 of 30
Quote:
Originally Posted by Tallest Skil View Post
 
Originally Posted by Benjamin Frost View Post

Ah-ha! I think you missed the little secret.

 

I must have PSRT, then.

 

Well, I've missed yours...

"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
Reply
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