Strong demand for iPhone 6 & 6 Plus persists, prompts Piper Jaffray to raise Apple price target to $

Posted:
in AAPL Investors edited November 2014
Piper Jaffray has been tracking availability of the iPhone 6 and iPhone 6 Plus at Apple Stores and continues to see demand outstripping supply, leading the investment firm to raise its price target on AAPL stock on Thursday.




Analyst Gene Munster's new target of $135 is up from his previous prediction of $120. He announced the revision on Thursday alongside the latest iPhone 6 and iPhone 6 Plus supply data collected from 80 Apple Stores.

Through their regular checks, Munster and his team have gauged same-day in-store pickup availability of Apple's latest iPhones. As of Nov. 14, Piper Jaffray found that 58 percent of iPhone 6 and iPhone 6 Plus models were available in stores.

While that's up significantly from the 6 percent availability tracked in mid-October, it still shows that Apple has a gap to close in order to catch up to consumer demand.

Munster believes it's likely that Apple will reach 100 percent availability for same-day in-store pickup by the end of December. But he added that supply limits could extend into March, as he believes many consumers will wait to buy an iPhone.

Piper Jaffray has also been tracking online availability of the iPhone 6 and iPhone 6 Plus, and Apple's online store has seen improvements internationally though lead times are unchanged in the U.S. At the moment, new iPhone 6 orders are advertised to ship within 7 to 10 business days, while the lead time for the iPhone 6 Plus is 3 to 4 weeks.




Piper Jaffray is the second investment firm to set a new, higher price target of $135 this week. Evercore Partners also raised its target this week, telling investors that it expects Apple will reaccelerate revenue growth to 15 percent year over year in fiscal 2015.

Shares of Apple have seen significant gains over the last month, with the company trading at new all-time highs and record market capitalization levels. Those gains have prompted a number of analysts to revise their price targets in recent weeks.

Just this week, RBC Capital Markets upped its target on shares of AAPL to $120, as analyst Amit Daryanani told investors he expects the Apple Watch will earn $10 billion in revenue in its first year of availability.

And earlier this month UBS set a new target of $125, after analyst Steven Milunovich revealed the results of a new survey showing the potential for substantial market share for the jumbo-sized iPhone 6 Plus. Milunovich believes demand for both the iPhone 6 and iPhone 6 Plus could be about 190 million total units through December of 2015.
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Comments

  • Reply 1 of 71
    lkrupplkrupp Posts: 7,437member

    Looks like it’s going to be a monster quarter but some are correctly pointing out that having a single product be responsible for the vast majority of your business is a bit scary. Obviously the iPhone has a LOT of growth left in it but Apple must be thinking ahead to the future. The executive team are not stupid and I think we will see diversification into other products and markets. I’m not sure what those products and markets might be but I’ll let Tim and Co. figure that out.

  • Reply 2 of 71

    "Look, Evercore, me too!"

  • Reply 3 of 71
    Quote:

    Originally Posted by lkrupp View Post

     

    Looks like it’s going to be a monster quarter but some are correctly pointing out that having a single product be responsible for the vast majority of your business is a bit scary. Obviously the iPhone has a LOT of growth left in it but Apple must be thinking ahead to the future. The executive team are not stupid and I think we will see diversification into other products and markets. I’m not sure what those products and markets might be but I’ll let Tim and Co. figure that out.




    The good thing is that Apple's other product lines are also rather profitable. The Software and Services business continues to have strong growth as well, in spite of the slowdown in music sales, so even if iPhone sales slow they should still do well.

  • Reply 4 of 71
    Quote:

    Originally Posted by AppleInsider View Post



    Shares of Apple have seen significant gains over the last month, (…). Those gains have prompted a number of analysts to revise their price targets in recent weeks.

     


     

    Is that what prompts analysts to revise their price targets¿ As a reaction to recent, significant share gains¿

  • Reply 5 of 71
    mac_128mac_128 Posts: 3,452member
    
    
    
    lkrupp wrote: »
    I’m not sure what those products and markets might be
    Hello, ?Pay?
    Apple TV?
    ?Watch?

    I think they are doing just fine ...
  • Reply 6 of 71

    Gene Munster reminds me of last time when he used to pump AAPL above 600 almost everyday. He is getting there now. We will see if AAPL is close to the top or close to the bottom!

  • Reply 7 of 71
    Why do people always worry about Apple having a large portion of their business tied to a single product (iPhone)?

    What about Google? Their entire company rests on a single product - advertising. They are far more susceptible than Apple to brig affected by a downturn of their most successful product.
  • Reply 8 of 71
    MacProMacPro Posts: 18,409member
    Gene Munster reminds me of last time when he used to pump AAPL above 600 almost everyday. He is getting there now. We will see if AAPL is close to the top or close to the bottom!

    He's getting where now? Close to 600 pre split? Or am I misunderstanding you.
  • Reply 9 of 71
    Quote:

    Originally Posted by EricTheHalfBee View Post



    Why do people always worry about Apple having a large portion of their business tied to a single product (iPhone)?



    What about Google? Their entire company rests on a single product - advertising. They are far more susceptible than Apple to brig affected by a downturn of their most successful product.



    No kidding ! 

     

    And there are many people like me who have completely ditched Google. 

  • Reply 10 of 71
    I can't understand how Mercedes-Benz have survived for so long - nothing but cars... And trucks. They don't even make toasters, or hellishly expensive espresso makers.

    good grief.
  • Reply 11 of 71
    Quote:

    Originally Posted by cjcoops View Post



    I can't understand how Mercedes-Benz have survived for so long - nothing but cars... And trucks. They don't even make toasters, or hellishly expensive espresso makers.



    good grief.

     

    Quote:

    Originally Posted by cjcoops View Post



    I can't understand how Mercedes-Benz have survived for so long - nothing but cars... And trucks. They don't even make toasters, or hellishly expensive espresso makers.



    good grief.



    I was thinking the exact same thing. 

  • Reply 12 of 71
    Quote:

    Originally Posted by EricTheHalfBee View Post



    Why do people always worry about Apple having a large portion of their business tied to a single product (iPhone)?



    What about Google? Their entire company rests on a single product - advertising. They are far more susceptible than Apple to brig affected by a downturn of their most successful product.

     

    WTF.

     

    What has Google's business got to do with Apple's business?

  • Reply 13 of 71
    AAPL >= $120 Black Friday
  • Reply 14 of 71
    dasanman69dasanman69 Posts: 12,985member
    WTF.

    What has Google's business got to do with Apple's business?

    Pure deflecting, 'don't look at us, look at them'. I can't see why people insist on adding negativity on a positive article.
  • Reply 15 of 71
    apple ][apple ][ Posts: 8,738member

    Just passed 116 a few minutes ago!:smokey:

     

    The last time that I picked up some AAPL was a couple of minutes after they released their last earnings report, and AAPL has been in beast mode ever since!<img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

     

    And of course the iPhone represents the majority of Apple's revenue, but even without the iPhone, Apple would still be a very successful company that other companies would envy.

     

    But who cares about hypothetical nonsense? The fact remains that Apple does have the iPhone, and they're making a damn killing! Apple is the one who set off the entire smart phone category! And there's more to come!

  • Reply 16 of 71
    apple ][apple ][ Posts: 8,738member
    Quote:

    Originally Posted by dasanman69 View Post





    Pure deflecting, 'don't look at us, look at them'. I can't see why people insist on adding negativity on a positive article.



    Other people's misfortune makes me happy.

  • Reply 17 of 71
    dasanman69dasanman69 Posts: 12,985member
    apple ][ wrote: »

    Other people's misfortune makes me happy.

    Keep it to yourself.
  • Reply 18 of 71
    Quote:

    Originally Posted by Apple ][ View Post

     

    Just passed 116 a few minutes ago!:smokey:

     

    The last time that I picked up some AAPL was a couple of minutes after they released their last earnings report, and AAPL has been in beast mode ever since!<img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

     

    And of course the iPhone represents the majority of Apple's revenue, but even without the iPhone, Apple would still be a very successful company that other companies would envy.

     

    But who cares about hypothetical nonsense? The fact remains that Apple does have the iPhone, and they're making a damn killing! Apple is the one who set off the entire smart phone category! And there's more to come!




    Yep. Apple's iPad business is larger than McDonalds.

     

    I keep thinking "how high will it go?". $135 seems a bit conservative.

  • Reply 19 of 71
    Quote:

    Originally Posted by Apple ][ View Post

     



    Other people's misfortune makes me happy.


    https://techpinions.com/samsung-schadenfreude-and-the-fall-of-the-church-of-market-share/35451

     

     

    That's why this article is so delightful to read. <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

  • Reply 20 of 71
    apple ][apple ][ Posts: 8,738member
    Quote:

    Originally Posted by dasanman69 View Post





    Keep it to yourself.

     

    You must be kidding. This site is swarming with Android infiltrators and other types who clearly do not like Apple.

     

    I will continue to ridicule, mock and speak not too highly of what I think of Apple's competitors, various copycats and other companies out there.

     

    Samsung and others are probably busy making new attack ads right now against Apple and Apple users. Screw them all!

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