FBR Capital sees 'golden buying opportunity' in Apple stock, maintains $175 target

Posted:
in AAPL Investors edited August 2015
Investors would be wise to take advantage of recent losses in Apple's share price, FBR Capital Markets said on Thursday, predicting that another major growth cycle is on the horizon for the iPhone maker.




Shares of Apple are down about 12 percent since the company reported its June quarter results. To analyst Daniel Ives, that has created a "golden buying opportunity" for investors.

In a research note published on Thursday, a copy of which was provided to AppleInsider, Ives reiterated his "outperform" rating and price target of $175. He characterized Apple's record June quarter, which fell short of lofty Wall Street expectations, as a "B-plus," and compared it to concerns investors had with the iPhone 5 product cycle.

"We are seeing the forest through the trees, as we believed the unrivaled fundamental strength behind the company's iPhone 6 product cycle (less than 30% of customers have upgraded to date), a massive greenfield China market opportunity, and a host of growing new products/services (e.g., Apple Music, streaming TV possible later this fall, Apple Pay) are setting the stage for the company's next big leg of growth," Ives wrote.

Shares of AAPL stock fell below their 200-day moving average earlier this week, the first time they had done so since September of 2013.




In addition to selling fewer iPhones than expected in its June quarter, Apple also faces scrutiny over its anticipated forthcoming "iPhone 6s" series, and tough comparisons from the iPhone 6 launch in 2014. But to Ives, many users have yet to upgrade to the larger displays of the iPhone 6 and iPhone 6 Plus, presenting huge potential for this year's presumed "S" upgrade.

There's also been concern that the Chinese market could prove soft for Apple, especially in the face of low-cost competitors like Xiaomi and Huawei. However, Ives believes Apple will maintain its "white-hot momentum" there, too.

RBC Capital Markets also reiterated its support of Apple stock earlier this week, maintaining a $150 price target and "outperform rating. Analyst Amit Daryanani cited Apple's $21.7 billion in purchase commitments as of June 2015 as a sign of a huge fall for the company.

Not all investment banks have remained steadfast in their support of AAPL, however. Bank of America Merrill Lynch downgraded Apple stock to neutral on Wednesday, and lowered its price target from $142 to $130, citing expectations for decelerating iPhone sales and slower gains in China.
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Comments

  • Reply 1 of 26
    yup...it's time to talk up Apple again. All the manipulating fat cats on the street brought it crashing down...now they're loading up on shares and magically, all of the China fears are suddenly gone. Funny how that works.
  • Reply 2 of 26
    ncil49ncil49 Posts: 30member
    Apple will be treated like a utility in a few years: big dividend, low pe, and no growth. The off shore money repatriation will come about the time apple has 300 billion in cash which is such a huge number - all thinks to the smart phone addiction. No sign of that waning for a few years at least
  • Reply 3 of 26
    rogifanrogifan Posts: 10,669member
    yup...it's time to talk up Apple again. All the manipulating fat cats on the street brought it crashing down...now they're loading up on shares and magically, all of the China fears are suddenly gone. Funny how that works.

    Yep pump and dump rinse and repeat at its finest.
  • Reply 4 of 26
    schlackschlack Posts: 673member
    i'd load up on more shares but it's already my largest investment. seems like a no brainer to buy apple shares now. it's crazy cheap..
  • Reply 5 of 26
    MacProMacPro Posts: 17,513member
    Did anyone read if Tim bought a load while it was down? I haven't been paying much attention as i agree with everyone here this is nothing but shenanigans. That said, it must be great for Tim I'd think ... wait .... you don't think??? ... nah ....
  • Reply 6 of 26
    rogifanrogifan Posts: 10,669member
    Did anyone read if Tim bought a load while it was down? I haven't been paying much attention as i agree with everyone here this is nothing but shenanigans. That said, it must be great for Tim I'd think ... wait .... you don't think??? ... nah ....

    It's nuts. Look at Disney. Decent quarter. Stock down 8% yesterday and another 5% so far today. All because of freaking ESPN?
  • Reply 7 of 26
    SpamSandwichSpamSandwich Posts: 29,754member
    yup...it's time to talk up Apple again. All the manipulating fat cats on the street brought it crashing down...now they're loading up on shares and magically, all of the China fears are suddenly gone. Funny how that works.

    True about the market and sentiment manipulation, however the China concerns are more substantive. Finally the Chinese government's rosy 7% annual growth figures are being called inaccurate. Their actual growth MAY be somewhere in the 3-4% range, which is good but not amazing.
  • Reply 8 of 26
    SpamSandwichSpamSandwich Posts: 29,754member
    rogifan wrote: »
    It's nuts. Look at Disney. Decent quarter. Stock down 8% yesterday and another 5% so far today. All because of freaking ESPN?

    Definitely looking at that stock. Bob Iger runs a tight ship.
  • Reply 9 of 26
    SpamSandwichSpamSandwich Posts: 29,754member
    Did anyone read if Tim bought a load while it was down? I haven't been paying much attention as i agree with everyone here this is nothing but shenanigans. That said, it must be great for Tim I'd think ... wait .... you don't think??? ... nah ....

    Why would Tim need to buy more stock? Isn't he compensated with a salary and stock?
  • Reply 10 of 26
    Why would Tim need to buy more stock? Isn't he compensated with a salary and stock?

    I think he meant for Apple to buy back more stock, not for Tim personally.
  • Reply 11 of 26
    SpamSandwichSpamSandwich Posts: 29,754member
    isteelers wrote: »
    I think he meant for Apple to buy back more stock, not for Tim personally.

    Oops. ???? I'll just sit here and meditate.
  • Reply 12 of 26
    Quote:

    Originally Posted by sog35 View Post

     

    I agree.

     

    I was going to hold Apple to $150.  Forget it.  I'm going to punish all those weak hands and Wall Street manipulators who sold the last few weeks.  I'm holding my shares to $200.  May take till 2018 but I don't care.


    Are you still going to self-ban for a year if it doesn't hit $150 by EOY?

  • Reply 13 of 26
    mike1mike1 Posts: 1,704member

    Personally, I'd rather buy stock in companies that choose to make decisions based on long term benefits to the company rather than to please those on wall street that prefer quick profits. Companies like apple and Disney are obvious examples. Just keep selling profitable products that customers want to return to again and again.

  • Reply 14 of 26
    Quote:

    Originally Posted by Rogifan View Post



    It's nuts. Look at Disney. Decent quarter. Stock down 8% yesterday and another 5% so far today. All because of freaking ESPN?

    Lauren Jobs has had a bad week, wealth-wise.... :\

  • Reply 15 of 26
    Quote:

    Originally Posted by SpamSandwich View Post



    Definitely looking at that stock. Bob Iger runs a tight ship.

    Great company, great products and brands, great management.

     

    But the stock still looks a tad pricey: at a forward PE ratio of ~20x, a lot of growth is already priced into the stock. And the dividend yield is a bit low.

  • Reply 16 of 26
    dasanman69dasanman69 Posts: 12,957member
    rogifan wrote: »
    It's nuts. Look at Disney. Decent quarter. Stock down 8% yesterday and another 5% so far today. All because of freaking ESPN?
    Lauren Jobs has had a bad week, wealth-wise.... :\

    I'd love to have her 'bad week, wealth wise'
  • Reply 17 of 26
    dasanman69 wrote: »

    I'd love to have her 'bad week, wealth wise'

    You probably did, but are not -- or choose to be not -- aware of it.
  • Reply 18 of 26
    dasanman69dasanman69 Posts: 12,957member
    dasanman69 wrote: »

    I'd love to have her 'bad week, wealth wise'

    You probably did, but are not -- or choose to be not -- aware of it.

    I'm pretty sure that I'd definitely choose to be aware that I'm a multimillionaire if I was one. ;)
  • Reply 19 of 26
    dasanman69 wrote: »

    I'm pretty sure that I'd definitely choose to be aware that I'm a multimillionaire if I was one. ;)

    She's a multi-Billionaire, not multi-millionaire.

    That's not very relavant anyway. I think I wrongly assumed that you might have a retirement plan, or investment in mutual funds etc. My mistake.
  • Reply 20 of 26
    dasanman69dasanman69 Posts: 12,957member
    dasanman69 wrote: »

    I'm pretty sure that I'd definitely choose to be aware that I'm a multimillionaire if I was one. ;)

    She's a multi-Billionaire, not multi-millionaire.

    That's not very relavant anyway. I think I wrongly assumed that you might have a retirement plan, or investment in mutual funds etc. My mistake.

    Of course I have a retirement plan but it's not in the billions. With her kind of wealth a bad week is still just a speed bump. Just ride it out and soon be back up to speed.
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