Goldman Sachs ups Apple price target to $720, expects exciting software at WWDC

Posted:
in AAPL Investors edited June 2014
Add Goldman Sachs to the parade of investment firms that revised their price targets on Apple stock this week, following continued gains by the iPhone maker ahead of next week's Worldwide Developers Conference and 7-for-1 stock split.




With shares of Apple repeatedly setting new 52-week highs, analyst Bill Shope increased his price target from $635 to $720 this week in a note to investors, a copy of which was provided to AppleInsider. He expects big things out of Apple's WWDC next week, where he believes the company will show off groundbreaking advancements to its software offerings.

"While Apple's software-only events have rarely captured the same level of excitement as its hardware launches, we believe this should change," Shope said. "Indeed, with the potential for substantial hardware differentiation and few new hardware categories that can substantially impact Apple's $175 billion revenue base, iOS platform differentiation is becoming increasingly critical."

Potential iOS platform enhancements the analyst anticipates include mobile payments, connected "smart homes," and personal health monitoring methods. He sees those additions as increasing the so-called "stickiness" of Apple's mobile platform, ensuring that users stick with iOS when upgrading to their next smartphone or tablet.

"Overall, while the event will be light on new hardware, we believe the potential for substantial platform enhancements at WWDC and throughout this year should serve as positive catalysts for the stock," he said. Indeed, these platform enhancements, upcoming iPhone and iPad refreshes, and Apple's continued installed base expansion should allow for multiple expansion and upward earnings revisions."


The NASDAQ MarketSite TV studio, via Luiss Villa del Campo.


Goldman Sachs joins a number of other firms who have been prompted to increase their price targets for Apple this week following the company's gains. Earlier Friday, Wells Fargo Securities revised its "valuation range" for shares of AAPL to between $595 and $640, but Apple quickly exceeded the high end of that range as soon as trading began in the morning.

UBS also increased its price target to $700 on Thursday, and told investors that it expects a significant number of user upgrades to take place when Apple releases its anticipated "iPhone 6" later this year. Barclays also upped its price target to $655 on Wednesday, saying that the new number shows "respect" for Apple's momentum headed into the second half of 2014.
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Comments

  • Reply 1 of 31
    robin huberrobin huber Posts: 3,969member
    Where does analysis by people who control billions in Apple stock end, and stock manipulation begin? Inquiring minds want to know.
  • Reply 2 of 31
    slurpyslurpy Posts: 5,384member
    This shit is hilarious. Not gonna complain about increasing price targets, but these are the same banks that kept severely Downgrading the stock the whole year to ridiculous levels. What's changed? Everyone knew that there would be a wwdc around this time, and Apple has announced nothing. On what fucking basis, in terms of fundamentals, were these banks downgrading, and now upgrading the stock, with such an extreme range? Fucking clowns.
  • Reply 3 of 31
    mpantonempantone Posts: 2,065member

    For the sake of your blood pressure, I suggest you stay away from the equities market. Consider investing in tax-free municipal bonds. Your mindset is not suited for equity investing.

  • Reply 4 of 31
    rogifanrogifan Posts: 10,669member
    So what will the stock do when a mobile payments and smart home platform aren't announced at WWDC. According to 9to5Mac, Apple is just getting started on mobile payments stuff and Gigaom claims the smart home platform is really just going to be a MFI certification program. I have a feeling there is no way this WWDC can possibly live up to the media generated hype. Of course it doesn't help when Eddy Cue says Apple's upcoming product pipeline is the best in 25 years. Way to ratchet up the pressure and expectations.
  • Reply 5 of 31
    schlackschlack Posts: 721member
    wtf, they are chasing a train.

    apple will be at 800 bf the end of the yr.

    these analysts are morons.
  • Reply 6 of 31
    sflocalsflocal Posts: 6,099member
    Quote:

    Originally Posted by schlack View Post



    wtf, they are chasing a train.



    apple will be at 800 bf the end of the yr.



    these analysts are morons.



    800 by the end of the year??  I'll bet you that it will be 1/8th of that by the end of the year... :)

  • Reply 7 of 31
    zoetmbzoetmb Posts: 2,654member
    Quote:

    Originally Posted by Slurpy View Post



    This shit is hilarious. Not gonna complain about increasing price targets, but these are the same banks that kept severely Downgrading the stock the whole year to ridiculous levels. What's changed? Everyone knew that there would be a wwdc around this time, and Apple has announced nothing. On what fucking basis, in terms of fundamentals, were these banks downgrading, and now upgrading the stock, with such an extreme range? Fucking clowns.

    Exactly.    The best of the clowns projected $635 and now the stock hit $635 and most of the 2014 product line hasn't even hit yet and so these absurdly overpaid genius are now saying, "oh yeah...we project it's going to go higher."    Duh.   What unmistakable brilliance.    A lot of these clowns had Apple practically out of business by now - "There's no innovation anymore, Android is getting all the market share, the phone market is saturated, no one is buying computers, the iPad has too much cheaper competition...wah, wah, wah."  

     

    Hmmm...it's raining outside today.  I project that we're going to see a lot of umbrellas and windshield wipers moving.   Oh yeah....and the ground is going to be wet.   Can I now get paid what these fools get paid?

     

    I guess my problem is that when I don't know something, I don't have the guts to claim that I do and when something is incredibly obvious to me, I assume it's obvious to everyone else as well and my opinion on the matter is of no interest to anyone else.   I guess the way you make the big money in this world is to act like a fool.  

  • Reply 8 of 31
    pazuzupazuzu Posts: 1,728member
    slurpy wrote: »
    This shit is hilarious. Not gonna complain about increasing price targets, but these are the same banks that kept severely Downgrading the stock the whole year to ridiculous levels. What's changed? Everyone knew that there would be a wwdc around this time, and Apple has announced nothing. On what fucking basis, in terms of fundamentals, were these banks downgrading, and now upgrading the stock, with such an extreme range? Fucking clowns.

    Scram. Yesterday you claimed the stock went up because of Beats which was bizarre in itself. If you can't comprehend what Cook, :rolleyes:Cue and others have been hinting at then you shouldn't be commenting. :rolleyes:
  • Reply 8 of 31
    anantksundaramanantksundaram Posts: 20,405member
    Quote:

    Originally Posted by Robin Huber View Post



    Where does analysis by people who control billions in Apple stock end, and stock manipulation begin? Inquiring minds want to know.

    How does publicly available information -- which this is -- lead to 'stock manipulation'? Inquiring minds want to know.

  • Reply 10 of 31

    It's all about VILLAIN.

     

    Right?  ;)

  • Reply 11 of 31
    SpamSandwichSpamSandwich Posts: 33,407member
    A day late and a billion dollars short. Always be suspicious when analysts' opinions align.
  • Reply 12 of 31
    alcstarheelalcstarheel Posts: 554member
    How does publicly available information -- which this is -- lead to 'stock manipulation'? Inquiring minds want to know.
    See this is one thing I don't get..if these analyst make their projections why are they just allowed to revise them when they become underwater? I'm no investor by any means (I'm a tiny investor compared to almost anyone else) but shouldn't they be restricted in some fashion from providing further guidance when they were found to be blatantly wrong? Of course people don't have to listen to them but they're "ratings" become nationally broadcast news that does affect how people invest in the stock. Maybe if they weren't just speculators they would provide more accurate, lasting projections.
  • Reply 13 of 31
    512ke512ke Posts: 782member

    I would invest in tax free municipal bonds, but their yield is less than Apple's current dividend.

     

    Apple is a great investment if you either don't have internet access, you have nerves of steel, or you are being medicated for anxiety.

     

    The positive thing, in my opinion, is that investors are losing their respect (rightly) for analysts.

     

    Analysts used to be enshrined like movie critics.  Both are fading fast in terms of their relevance.

     

    You can't cry "sky is falling" and then suddenly scream "buy apples" and maintain credibility.

     

    http://investorplace.com/2014/05/aapl-stock-apple-ipad-sales/#.U3T3gTmMrJo

  • Reply 14 of 31
    anantksundaramanantksundaram Posts: 20,405member
    Quote:

    Originally Posted by alcstarheel View Post



    See this is one thing I don't get..if these analyst make their projections why are they just allowed to revise them when they become underwater? I'm no investor by any means (I'm a tiny investor compared to almost anyone else) but shouldn't they be restricted in some fashion from providing further guidance when they were found to be blatantly wrong? Of course people don't have to listen to them but they're "ratings" become nationally broadcast news that does affect how people invest in the stock. Maybe if they weren't just speculators they would provide more accurate, lasting projections.

    As the old saying goes,* "forecasting is tough, especially if it's about the future." There isn't -- and there shouldn't be -- a law against making predictions about, or projecting the future. Nor against being wrong in one's predictions

     

    Also, every decision we make is implicitly or explicitly based some prediction we have or believe about the future. So making predictions, by themselves, has nothing to do with one being a speculator.

     

    The answer to your puzzlement is pretty much there in what you yourself said: people don't have to listen to them. Most smart people I know don't use analyst predictions per se, as much as they try to understand the logic or the argument that leads to his/her predictions -- that's really where there might be, among the better analysts, some occasional insight. There isn't much more to it.

     

    *It has been variously attributed to Yogi Berra, Neils Bohr, Dan Quayle, and Mark Twain.

  • Reply 15 of 31
    nofeernofeer Posts: 2,427member
    How about this software upgrade
    FIX IPHOTO AND ITUNES
    so they are FULLY FUNCTIONAL
    on an external hard drive connected to a router
    Say maybe their airport AC ???
    It's a mess and needs to be FIXED
    the way it is now they ARE NOT
    And chews up massive chunk of my late 2013 MBP RET
  • Reply 16 of 31
    drblankdrblank Posts: 3,385member
    Where does analysis by people who control billions in Apple stock end, and stock manipulation begin? Inquiring minds want to know.

    Analysts themselves control nothing or very little stock. They actually. Aren't really supposed to own stock unless they disclose that information. The brokerage houses they work for hold stock, but in apple's case the number of institutional investors for Apple stock has been going down and it's actually fairly low. At least this was in a recent article that I read. So be careful in how you position these analysts.

    Apple, has been the one that's been manipulating the stock when they do these large purchases, and then there are the individual investors like iCahn.that has some influence.

    All analysts do is figure out what the target price is and a lot of times, they release a 12 month target. If you go to somewhere like Yahoo! Or something like that, you can look up the latest 12 month target. But I always recommend doing your own numbers and not just taking someone else's opinion just because it's more positive than someone else's. I honestly don't know how much of an impact on sales the new OS versions are going to make on hardware sales. My biggest concern is Apple's ability to not only increase demand for their products, but be able to physically make more products to meet these increased demand, but some thing haven't increased in demand, like the iPad last quarter.

    So, I'm very cautious right now.
  • Reply 17 of 31
    paul94544paul94544 Posts: 1,027member
    pre WWDC rally , buys some puts at 640
    based on new products for fall expected and then disappoint (read where is the 6inch model iPhone only 5.5 inch perhaps, what no iWatch or whatever, who knows really) all the people who wanted to know NOW at WWDC when all the vaporware the idiot clickosphere wanted and Apple said nothing about don't materialize. and 7:1 split
    pull back to 600 = $85 in short term (entry point), close out the PUT make some income
    then roll up and down to 700=$100 by September or end of year more likely
    Apple wants the stock to trade between $85 and $100 for rest of year then possible onward and upward as they buy back shares , of course it will roll up and down per fibonacci and as idiots (read boosters and naysayers) on this board predict highs of $800/$115 way too early and the naysayers who hate apple predict doom. All is normal

    btw that choice of 7 for the split is genius, equates to $100 (creates a psychological short term resistance and possible jump off point for 2015) is the support of next long term roll and as products generate more profits, it will be the support of next upward trend. to $800 by mid to late 2015 if Christmas sales and next years sales are good enough and bull market keeps going and result come in in1st Qtr of 2015 and if the sales targets pan out
  • Reply 18 of 31
    paul94544paul94544 Posts: 1,027member

  • Reply 19 of 31
    robin huberrobin huber Posts: 3,969member
    drblank wrote: »
    Analysts themselves control nothing or very little stock. They actually. Aren't really supposed to own stock unless they disclose that information. The brokerage houses they work for hold stock, but in apple's case the number of institutional investors for Apple stock has been going down and it's actually fairly low. At least this was in a recent article that I read. So be careful in how you position these analysts.

    Apple, has been the one that's been manipulating the stock when they do these large purchases, and then there are the individual investors like iCahn.that has some influence.

    All analysts do is figure out what the target price is and a lot of times, they release a 12 month target. If you go to somewhere like Yahoo! Or something like that, you can look up the latest 12 month target. But I always recommend doing your own numbers and not just taking someone else's opinion just because it's more positive than someone else's. I honestly don't know how much of an impact on sales the new OS versions are going to make on hardware sales. My biggest concern is Apple's ability to not only increase demand for their products, but be able to physically make more products to meet these increased demand, but some thing haven't increased in demand, like the iPad last quarter.

    So, I'm very cautious right now.

    Nice to get thoughtful answer instead of snark. Thank you.
  • Reply 20 of 31
    robin huberrobin huber Posts: 3,969member
    How does publicly available information -- which this is -- lead to 'stock manipulation'? Inquiring minds want to know.

    If it wasn't public, it wouldn't have much effect. What I am wondering is, if they publish a very bullish report on a stock, does that not influence the stock to rise? If many other big investment houses do the same, doesn't that magnify the effect? Wonder if anyone has done serious study of this.
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