Evercore increases Apple price target to $700, citing momentum from new iPads & iPhones
As shares of Apple continue to trade higher, Evercore Partners on Friday upped its price target for AAPL stock to $700, citing what the firm called "rejuvenated momentum" seen from recent iPhone and iPad product refreshes.
Analyst Rob Cihra believes the new iPhone 5s, iPhone 5c, iPad Air and iPad mini with Retina display have not only served as a spark for the company, but will also help to stabilize its gross margins. He also sees a number of "untapped opportunities" for Apple regarding the iOS platform's marriage with hardware and services.
The revised price target, up from $630, was not prompted by any changes to estimated future sales by Apple. But Cihra does consider mobile thin-client computing to be one of the most important trends in technology today, and he sees Apple's high-end user demographic and varied product lineup making it what he called the "king of monetization."
"Like iTunes, Apple mostly looks to monetize by driving more hardware," he said, "but we also see its App Store and iOS ecosystem and increasingly leverageable sources of engagement, measures of user behavior and cross-device tools for advertising and payments in both on/offline transactions."
Specifically, Cihra sees Apple's revenue from mobile applications hitting $4 billion next year, representing a 27 percent year over year increase. That's still just 2 percent of the company's total earnings, but the App Store remains an important factor in driving the iOS ecosystem, he said.
Cihra also believes that iPad growth will reaccelerate in calendar 2014, growing 16 percent year over year on the strength of the redesigned iPad Air and new Retina display on the second-generation iPad mini. iPad sales for 2013 are projected to have increased around 11 percent.
Finally, the analyst also believes the "Air" branding on the latest 9.7-inch iPad sets the stage for Apple to introduced a larger iPad model in calendar 2014 dubbed the "iPad Pro." Like the company's MacBook lineup, he sees Apple offering "Air" and "Pro" models that would serve different markets and expand sales of the iPad lineup.
Analyst Rob Cihra believes the new iPhone 5s, iPhone 5c, iPad Air and iPad mini with Retina display have not only served as a spark for the company, but will also help to stabilize its gross margins. He also sees a number of "untapped opportunities" for Apple regarding the iOS platform's marriage with hardware and services.
The revised price target, up from $630, was not prompted by any changes to estimated future sales by Apple. But Cihra does consider mobile thin-client computing to be one of the most important trends in technology today, and he sees Apple's high-end user demographic and varied product lineup making it what he called the "king of monetization."
"Like iTunes, Apple mostly looks to monetize by driving more hardware," he said, "but we also see its App Store and iOS ecosystem and increasingly leverageable sources of engagement, measures of user behavior and cross-device tools for advertising and payments in both on/offline transactions."
Specifically, Cihra sees Apple's revenue from mobile applications hitting $4 billion next year, representing a 27 percent year over year increase. That's still just 2 percent of the company's total earnings, but the App Store remains an important factor in driving the iOS ecosystem, he said.
Cihra also believes that iPad growth will reaccelerate in calendar 2014, growing 16 percent year over year on the strength of the redesigned iPad Air and new Retina display on the second-generation iPad mini. iPad sales for 2013 are projected to have increased around 11 percent.
Finally, the analyst also believes the "Air" branding on the latest 9.7-inch iPad sets the stage for Apple to introduced a larger iPad model in calendar 2014 dubbed the "iPad Pro." Like the company's MacBook lineup, he sees Apple offering "Air" and "Pro" models that would serve different markets and expand sales of the iPad lineup.
Comments
Apple is doomed.™
Doomed ( patented)
"rejuvenated momentum" is a bunch of mularky. Apple never lost momentum. Analysts are covering their asses.
Just like the weather forecasters do. Predict then backpedal.
apple upgrated and stock is down?
This is just one relatively small analyst. You can't expect that to have much effect on the stock price.
Given that analysts are the reason the stock fell 300 points in the last year on no logic whatsoever, yeah, we can expect that.
For the past week, all I've been hearing about and seeing is articles and charts about how Apple has very strong sales and leading in this and that but from looking at the share price over the same period I might just as well thought that Apple hasn't been selling a single product. I find it harder and harder to trust Apple every quarter because I feel it's always going to lead to huge disappointment while the rest of the tech companies continue to run ever higher. I guess a company's value lies in the strength of its CEO and Apple has a wet noodle for a CEO. Another great year for Google and Amazon shareholders and another effed-up year for Apple shareholders thanks to the wet noodle.
Cry me a river. If you're have extra income to invest in the stock market and you let stock prices affect how much you enjoy Christmas then you have a problem, lol.
Mr. C. Dodo:
Please... pretty f***in' PLEASE... sell your Apple stock! Get out now while ya still have your shirt on your back, and get out of here before someone finds out who ya are and delivers a back-slap to your silly noggin in person! You're a loser with a big fat *L* regardless, no matter what you invest in!
And even more so for your views regarding Tim Cook and calling him a "wet noodle"! I know exactly where your headed with that diss too... ya homophobe! No place here for folks of your kind... your way of thinking... or investment advice! :mad:
Mr. C. Dodo:
Please... pretty f***in' PLEASE... sell your Apple stock! Get out now while ya still have your shirt on your back, and get out of here before someone finds out who ya are and delivers a back-slap to your silly noggin in person! You're a loser with a big fat *L* regardless, no matter what you invest in!
And even more so for your views regarding Tim Cook and calling him a "wet noodle"! I know exactly where your headed with that diss too... ya homophobe! No place here for folks of your kind... your way of thinking... or investment advice!
dont be mad bro. Down aapl means buying opportunity.
And yet AAPL is down $6 today,
People are skittish about the Fed ending it's easing policy.
Apple stock appears to have zero momentum or should I say zero upward momentum......
Get out now. Take the tax deduction and never look back.
By Felicia.
And the gambling continues... It is never based on a companies performance in real time... It is only based on the whims and fancies of major investors and big brokers... And people still don't understand...
Lol APPL is so heading up right now. It's a bull in a China shop shattering sales records, earnings records, with increasing margins, and new product categories coming along with a pretty fracking huge rollout of iDevices on China Mobile. This will be Apple's December to Remember. Huge. The haters and doubters will have nothing to stand on come January. Bookmark this page, come back, and tell me I'm right! lol.