Sales of 53M iPhones in June quarter predicted to help propel Apple stock to $170, Brean Capital say

Posted:
in AAPL Investors edited July 2015
Apple's June quarter will come in higher than most on Wall Street expect, Brean Capital told investors on Monday, revealing it expects the company to have sold as many as 53 million iPhones in the three-month period.




Analyst Ananda Baruah issued a research note on Tuesday, a copy of which was provided to AppleInsider, in which he reiterated his stance that Wall Street forecasts for Apple are "materially low" through 2017.

While market projections call for Apple to have shipped between 48 million and 50 million iPhones in the June quarter, Baruah believes the company likely shipped between 52 million and 53 million. Apple's implied unit guidance was estimated at around 49 million.

Baruah's research also suggests that the share of sales for the higher-priced iPhone 6 Plus is stronger than the market believes. He sees this driving average selling prices and gross margins higher than anticipated.




For the June quarter, Brean Capital had projected earnings per share of between $1.90 and $2.00, compared to Wall Street average of $1.77. Baruah has called for revenue between $52.5 billion and $53 billion, and gross margins between 40 and 40.3 percent.

Apple will report the results of its June quarter after markets close in the U.S. on July 21. But beyond that, Baruah has high expectations for the second half of calendar 2015 and heading into 2016.

As a result, Brean Capital has maintained a $170 price target for shares of AAPL, accompanied by a "buy" recommendation for investors.

The investment firm kicked off its coverage of Apple stock in April of this year with a $160 price target. Brean Capital's targets were raised higher that same month after Apple's record March quarter impressed investors.
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Comments

  • Reply 1 of 35
    freshmakerfreshmaker Posts: 517member
    I'll go with 55M iPhones. Apple always blows away even the sky-high predictions. The analyst estimates for the Apple Watch is 4.25M units. I dunno if Apple will report those or not.

    I like the $170 target though. Go baby go!
  • Reply 2 of 35
    lkrupplkrupp Posts: 6,530member

    AAPL slip sliding away with the rest of the market this past week. Chinese markets in retreat today. Greece fails, if the EU collapses you can kiss $170 goodby. You might even kiss $100 goodby. And of course your IRA is toast, no more $500 to spend on a watch.

  • Reply 3 of 35
    robin huberrobin huber Posts: 3,216member
    Really? Seems more likely stock will drop. Apple has been printing money and its stock is flat. When it does exceptionally well, it drops. Wall Street hates Apple.
  • Reply 4 of 35
    gregquinngregquinn Posts: 77member
    Quote:

    Originally Posted by lkrupp View Post

     

    AAPL slip sliding away with the rest of the market this past week. Chinese markets in retreat today. Greece fails, if the EU collapses you can kiss $170 goodby. You might even kiss $100 goodby. And of course your IRA is toast, no more $500 to spend on a watch.


    And that's why we should diversify if we're fortunate to have a reasonable sized IRA or 401k. Would be sorely tempted to sell a chunk of my APPLE stock if it hits $170.

  • Reply 5 of 35
    jfc1138jfc1138 Posts: 3,090member
    Quote:
    Originally Posted by lkrupp View Post

     

    AAPL slip sliding away with the rest of the market this past week. Chinese markets in retreat today. Greece fails, if the EU collapses you can kiss $170 goodby. You might even kiss $100 goodby. And of course your IRA is toast, no more $500 to spend on a watch.




    Yeah because a 2% portion of the EU is going to even be noticed., That's about the economy of Connecticut btw. Also we've been going down this road for five years so it's not like anyone will be caught surprised by the Greek tragedy... China? That's the communist government screwingwith the market they control for their own ends.

  • Reply 6 of 35
    apple ][apple ][ Posts: 8,360member

    Who cares about Greece? Greece is insignifcant, and they deserve whatever happens to them. Their foolishness and arrogance will cost them dearly. Greece won't have any effect on AAPL at all. 

     

    AAPL is basically a safe haven compared to most other things. 

  • Reply 7 of 35
    anantksundaramanantksundaram Posts: 18,823member
    Who's Brean Capital?
  • Reply 8 of 35
    beltsbearbeltsbear Posts: 314member
    Quote:

    Originally Posted by lkrupp View Post

     

    AAPL slip sliding away with the rest of the market this past week. Chinese markets in retreat today. Greece fails, if the EU collapses you can kiss $170 goodby. You might even kiss $100 goodby. And of course your IRA is toast, no more $500 to spend on a watch.




    Yup.  Apple is DOOMED!

  • Reply 9 of 35
    MacProMacPro Posts: 17,835member
    sog35 wrote: »
    Apple is up 35% the last 12 months.  No idea what you are talking about.

    Stop being so concerned about short-term movements.

    $170 starts to get very close to a Trillion Dollar Apple doesn't it?
  • Reply 10 of 35
    atlappleatlapple Posts: 496member
    Quote:
    Originally Posted by sog35 View Post

     

     

    what next?  Sun going to explode?  Universe collapse?

     

    Its called INVESTING not TRADING.

     

    If you are buying Apple stock and not willing to hold it for at least 5 years you are playing the game wrong.




    Stock has been flat for a while now. Just putting out a 170 target is just bogus. 

     

    "While market projections call for Apple to have shipped between 48 million and 50 million iPhones in the June quarter, Baruah believes the company likely shipped between 52 million and 53 million. Apple's implied unit guidance was estimated at around 49 million."

     

    Shippped not sold. 

  • Reply 11 of 35
    bobschlobbobschlob Posts: 1,074member
    I'll just be happy to see $126 this week. Is that too much to ask?
  • Reply 12 of 35
    atlappleatlapple Posts: 496member
    Quote:

    Originally Posted by sog35 View Post

     

     

    He is a troll for saying that Apple be $100 because of Greece.




    Well seeing Greece has an economy the size of Louisiana I would say that is rather unlikely. I'm more concerned about Apple Watch expectations. I'm never concerned about product sales, always concerned about the markets expectations. 

  • Reply 13 of 35
    geekmeegeekmee Posts: 279member
    "Materially low"... Is this another way to say Wall Street is Materially Wrong!??
  • Reply 14 of 35
    radarthekatradarthekat Posts: 2,899moderator
    sog35 wrote: »
    hope not.  I'd like to see $126+ next week though.

    I sold $126 calls expiring this Friday.

    You might be rolling those calls. Apple came back fairly well this afternoon. An up market day tomorrow and we could get a meaningful lift on the shares. I sold, late last Thursday, $130s, lots of them (I have 7800 Apple shares to cover them). Those should easily expire worthless this week.
  • Reply 15 of 35
    radarthekatradarthekat Posts: 2,899moderator
    sog35 wrote: »
    hope not.  I'd like to see $126+ next week though.

    I sold $126 calls expiring this Friday.

    Sog35, I sent you a private message to your account here. Check it out.
    - Radar
  • Reply 16 of 35
    future manfuture man Posts: 100member
    ALCON:

    Look everyone has a right to a mature/adult opinion on the potential of Apple stock or any other tech equity, however, some people on this posting either are cantankerous for the sake of being so or they type out a ridiculous an unsubstantiated comment before ever thinking about the validity of their remak(s). Aple may go to $170 or higher, then agin it may go lower or even stay where it is for a prolonged period of time.

    Despite banal remarks to the contrary, Apple is neither doomed, nor is its stock slated to bottom out based on the aside issue of Greece currency crisis or the Chinese government trying to place sound constrait market that need some governmental controls (as per the US and EU). Based on its sound product category and continued hgh profits, I see the stock going higher, perhaps to $150 by the 2015 holiday season and the expected demand for both existing and future announced Apple products at the October hardware showing event. The Apple Watch will most likely have 'respectable' numbers, but as with any new product, I should expect the Apple Watch to really mature in capabilities and function in the 2nd and 3rd model versions, there may even to a new model introduced in October!

    Even though Wall Street is not hot on the Apple stock, it cannot ignore Apple's huge cash flow and net profits in addition to its $200 billion cash hoard! As long as the company continues to deliver solid sales and revenue, I'd say screw the Wall Street opinion on Apple stock, after all, these were the same seven-figure genuises that could not get the 1999/2000 dot.com tech bullble right (remember the phase ;profits do not matter'?) and the 2008/2009 housing implosion! A few analysts to their credit were correct, but they werre also in the minority and largely ignored- once again greed and fear, not logic and critical thinking, rule Wall Street myopia.
  • Reply 17 of 35
    future manfuture man Posts: 100member



    Please!  Are you for real or do you just like to pull everyone's chain?  Greece is an issue that will sort itself out either way and it is only 3% or so of the European Common  market.  Debate can be made for its premature or evn participation in the EU, yet often it is a good thing that a disaster occurs every so often as a reminder to the 'experts' how things can go amiss and to take caution in the future.  China's government is only taking prudent steps to ensure that their consumer market does not overheat, in the same way that our Fed Reserve keeps a eye and a check on US monetary issues and acts appropriately.

     

    Concerning Apple, you are either a muckraker or a comedian!  It is a solid company with good products that consumers like and their cash flow is massive and expected to remain so in the future.  No company is safe from interruption especially in the IT field, just look at what happened to Blackberry, yet this was as much a sin on Blackberry's stoic management and CEOs than it was the mere introduction of a novel smartphone w/glass screens.  

     

    'Yes' Apple needs new products, but this does not mean throwing questionable cute gadgets  at the consumer either, witness the Google Glass failed introduction!  The product was produced and marketed poorly.  It was ,and probably always be, a nitch market which I can see for usage in the medical and detail-work field, yet it was soundly rejected by the public.  A lesson learned for Google is a lesson to be learned by all, 'cute gargets have a limited  appeal'.

     

    If Apple is a one-horse pony as so many so subscribe, then so too are so many other IT firms to include Intel, Oracle, Google, IBM, etc.

  • Reply 18 of 35
    revenantrevenant Posts: 480member

    mostly unrelated, but not totally-- apple watch is in a slump?

     

    http://www.macrumors.com/2015/07/07/apple-watch-demand-slides-june-slice/

  • Reply 19 of 35
    suddenly newtonsuddenly newton Posts: 13,724member
    revenant wrote: »
    mostly unrelated, but not totally-- apple watch is in a slump?

    http://www.macrumors.com/2015/07/07/apple-watch-demand-slides-june-slice/

    Good. Then it will be just me and the beautiful people who have one.
  • Reply 20 of 35
    mdriftmeyermdriftmeyer Posts: 7,185member
    lkrupp wrote: »
    AAPL slip sliding away with the rest of the market this past week. Chinese markets in retreat today. Greece fails, if the EU collapses you can kiss $170 goodby. You might even kiss $100 goodby. And of course your IRA is toast, no more $500 to spend on a watch.

    Horse crap. Greece has a combined GDP of < the state of Washington. You're deluded if you think it failing will crash Wall Street.
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