Shares of Apple predicted to reach $160 on continued strength of iPhone 6

Posted:
in iPhone edited May 2015
In a memo to investors on Monday, Canaccord Genuity raised its price target for Apple stock from $155 to $160, based on a belief that there remains plenty of room for expansion in iPhone 6 sales.




Analyst Michael Walkley specifically cited an internal estimate -- also previously claimed by Apple CEO Tim Cook -- that only 20 percent of people had upgraded to an iPhone 6 or 6 Plus by the end of the March quarter. As a result, Apple should continue to see "strong" replacement sales to existing iPhone owners, Walkley said.

Surveys conducted by Canaccord also reportedly indicated that a "greater mix" of Android users are converting to the iPhone 6 and 6 Plus than did to the iPhone 5, 5s, or 5c. A separate Kantar Worldpanel ComTech study recently noted that across Germany, France, Italy, Spain, and the U.K., roughly 32.4 percent of new iPhone buyers migrated from Android in the last quarter.

The second point echoes observations by a number of other analysts since the launch of the iPhone 6 in September. Commonly, it's argued that Android owners are more willing to consider the iPhone now that the device is offered in larger 4.7- and 5.5-inch screen sizes.

The iPhone 5, 5s, and 5c all used 4-inch screens at a time when many Android devices were already approaching or exceeding 5 inches. At the time, Apple spun the size difference into a marketing point, arguing that the iPhone was easier to grip and use with one hand.

Comments

  • Reply 1 of 18

    Just funny how manipulated Apple stocks are. Up one day, down the next, then up, down, up down...etc, etc...

  • Reply 2 of 18
    SpamSandwichSpamSandwich Posts: 28,794member
    It's the old rule of Apple stock at work here... the higher they pump the stock, the greater the concerted downward pressure from shorts.
  • Reply 3 of 18
    cnocbuicnocbui Posts: 3,613member

    The income Apple derives from Australia is about to take a large hit, and rightly so.  The Australian government is taking action against companies that divert their profits offshore to low tax countries like Ireland.  Loophole closed.: http://www.bbc.com/news/business-32687822

  • Reply 4 of 18
    I'm happy as long as Apple is above 100, I bought shares in 2004 and still holding and living from dividends. It's a shame that Apple can't get traction after that fantastic quarter.
  • Reply 5 of 18
    MacProMacPro Posts: 17,065member
    Isn't that getting close to the Trillion Dollar Company level? Around $170-ish isn't it?
  • Reply 6 of 18
    schlackschlack Posts: 671member
    amazing sales with the new phone, but also telling how drastically revenue can shift based on success or failure of a design/capability of a new product like the iphone.
  • Reply 7 of 18
    slurpyslurpy Posts: 4,960member
    Quote:
    Originally Posted by cnocbui View Post

     

    The income Apple derives from Australia is about to take a large hit, and rightly so.  The Australian government is taking action against companies that divert their profits offshore to low tax countries like Ireland.  Loophole closed.: http://www.bbc.com/news/business-32687822


     

    Oh, do shut up. You sound positively giddy- have you ever a time where you haven't rushed into a thread to goad about negative news, or shit on positive news? As if the income from Australia will have any significant impact on their balance sheet or stocks. Why the **** are you here if your fantasy is to have Apple fail? You've already been outed as a Samsung astroturfer, shilling for them, twisting the facts to do so, and defending them at every opportunity- so I'm not sure you exactly you've trying to fool. Hope you're being well compensated for your trash. 

  • Reply 8 of 18
    Quote:

    Originally Posted by Bryant NorCal View Post

     

    Just funny how manipulated Apple stocks are. Up one day, down the next, then up, down, up down...etc, etc...


    Look at Netflix today.  It gets one buy upgrade and the stock takes off.  The P/E grows even larger.  Netflix isn't required to pull more revenue or produce profits to increase it's value.  Everyone jumps on board without any sort of proof and the stock soars.  Apple on the other hand makes the revenue, profits, ups its buybacks, increases its dividend and increases its iPhone market share.  Apple has also been upgraded several times and what happens?  Nada!  The stock sits lower now than it did two months ago.  Netflix can generate greater shareholder value from mere analyst words.  Apple applies pure fundamentals and the share price goes nowhere.  I'd almost swear some factions are holding Apple's share price from moving but that's only my conspiracy theory.  All I know is actions that move most stocks do not move Apple and that makes things seem fishy to me.

  • Reply 9 of 18
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by appleempl View Post



    I'm happy as long as Apple is above 100, I bought shares in 2004 and still holding and living from dividends. It's a shame that Apple can't get traction after that fantastic quarter.



    Those who bought back then are in a pretty good position now. I sold my AAPL back in 2008 in order to build a new house. Now I have some capital that I could reinvest, but certainly not enough to live off the dividend. With a $300K investment I would earn about $300 per month in dividends.

  • Reply 10 of 18
    geekmeegeekmee Posts: 246member
    cnocbui wrote: »
    The income Apple derives from Australia is about to take a large hit, and rightly so.  The Australian government is taking action against companies that divert their profits offshore to low tax countries like Ireland.  Loophole closed.: http://www.bbc.com/news/business-32687822

    Release The Trolls!!!.... Apple is Doomed!
  • Reply 11 of 18
    mstone wrote: »

    Those who bought back then are in a pretty good position now. I sold my AAPL back in 2008 in order to build a new house. Now I have some capital that I could reinvest, but certainly not enough to live off the dividend. With a $300K investment I would earn about $300 per month in dividends.

    300k in shares should net you $412 a month pre-tax at today's price range. Not enough to live off of, but your investment should appreciate and the dividends are increasing much faster than inflation.
  • Reply 12 of 18
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by Steffen Jobbs View Post

     

    Look at Netflix today.  It gets one buy upgrade and the stock takes off.  The P/E grows even larger.  


    Companies like Netflix are regarded as rapidly growing, so investors tend to tolerate higher P/E ratios in the hopes that future profits will bring the ratio down. In the case of Netflix, the P/E has come way down in the past couple years. It is about a third of what it was. AAPL is a long term investment and even somewhat of a bargain right now at P/E 15.65 if you compare it to let's say the S&P 500 at 20.64.

     

    AAPL P/E is projected to be even lower next year. Right now a reasonable P/E for AAPL would be around 20 according to some typical formulas. AAPL rate of growth is expected to decrease over the next few years. It has been unsustainably high the last few according to some.

  • Reply 13 of 18
    lkrupplkrupp Posts: 5,805member

    Not gonna happen. There’s going to be a 15% downward market correction next week. My Phrenologist told me so and he has a really big head.

  • Reply 14 of 18
    yojimbo007yojimbo007 Posts: 844member
    Give it microsofts PE and we would be at 160 today !

    But the market believes in microsoft more than apple. .... Sad.

    I feel a huge and profound statement in the TV environment can help push the PE up to reasonable levels.
    where it is now , its absurd !
  • Reply 15 of 18
    mubailimubaili Posts: 372member
    One iPhone to rule them all.
  • Reply 16 of 18
    MacProMacPro Posts: 17,065member
    lkrupp wrote: »
    Not gonna happen. There’s going to be a 15% downward market correction next week. My Phrenologist told me so and he has a really big head.

    My acupuncturist and homeopathist disagree and they are pinning their hopes on this not diluting their shares.
  • Reply 17 of 18
    MacProMacPro Posts: 17,065member
    yojimbo007 wrote: »
    Give it microsofts PE and we would be at 160 today !

    But the market believes in microsoft more than apple. .... Sad.

    I feel a huge and profound statement in the TV environment can help push the PE up to reasonable levels.
    where it is now , its absurd !

    MS fans are still trying to buy Pan Am!
  • Reply 18 of 18
    radster360radster360 Posts: 538member
    Quote:

    Originally Posted by Steffen Jobbs View Post

     

    Look at Netflix today.  It gets one buy upgrade and the stock takes off.  The P/E grows even larger.  Netflix isn't required to pull more revenue or produce profits to increase it's value.  Everyone jumps on board without any sort of proof and the stock soars.  Apple on the other hand makes the revenue, profits, ups its buybacks, increases its dividend and increases its iPhone market share.  Apple has also been upgraded several times and what happens?  Nada!  The stock sits lower now than it did two months ago.  Netflix can generate greater shareholder value from mere analyst words.  Apple applies pure fundamentals and the share price goes nowhere.  I'd almost swear some factions are holding Apple's share price from moving but that's only my conspiracy theory.  All I know is actions that move most stocks do not move Apple and that makes things seem fishy to me.




    Yes, it sickens me to see how certain stocks, e.g. Netflix reacts on upgrades, while one of the most valuable company does in opposite direction. So why does "mere analyst words" works for one company and not another? I think this much more going on here. I am long on Apple, so I am fine here - But it does sickens me to see the behavior. Carl, where are are you? Where is that note you were going to publish in 2 weeks since the earning reports?

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