RBC reiterates $150 target for Apple stock, sees 'iPhone 6s' event boosting shares

Posted:
in AAPL Investors edited September 2015
Apple's Sept. 9 event, where it is expected to introduce a new iPhone and Apple TV, will likely be a catalyst for shares of the company, RBC Capital Markets told investors on Friday, while reiterating its $150 price target.




Analyst Amit Daryanani has maintained his "outperform" rating on shares of AAPL in his latest research note, a copy of which was provided to AppleInsider. In his view, Apple's Sept. 9 presentation will "provide investors with better clarity around the new product line-up, and also give insight into the potential for this upgrade and share gain cycle to sustain over the next several quarter."

In summarizing what is expected of Apple's next-generation "iPhone 6s," Daryanani did offer one interesting new tidbit: He believes the handset will sport more microphones than the iPhone 6 series, allowing for improved voice quality in calls and recordings.

The remainder of his product summary is in line with expectations, including a faster "A9" processor, Force Touch input, 2 gigabytes of RAM, a 12-megapixel rear camera, a body made of the same 7000 series aluminum as the Apple Watch, and a new rose gold color option.

"We think new casings material, better camera and Force Touch integration will be the key standouts from a product perspective," the analyst told investors.

Daryanani also said he expects the new Apple TV to be priced at $99 or higher. The latest rumors have pegged the price for the next-generation set-top box to start at $149.

He does not expect Apple's subscription streaming video service to be a part of the Sept. 9 event, nor does he believe the company will debut a jumbo-sized 12.9-inch "iPad Pro" next Wednesday. Historically, Apple has held new iPad launches for a separate media event in October.




RBC and other investment banks have largely stood by Apple as its stock price has tumbled in recent weeks, amid market concerns about the anticipated "iPhone 6s" upgrade cycle, as well as whether the company can continue its impressive growth in China.

To Daryanani, AAPL's current stock price is an "attractive entry point for investors." In his view, the company's current valuation --?some $40 lower than his price target as of premarket trading on Friday --?is "materially sub-par" when considering Apple's long-term revenue and earnings per share potential.
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Comments

  • Reply 1 of 22
    icoco3icoco3 Posts: 1,460member

    Those that listen to RBC should come here as this forum is more accurate than any investment firm has been.

  • Reply 2 of 22

    Can anyone explain why the y-axis compresses so much at the higher end?  What is the creator of such a graph trying to accomplish with compression like this?  It significantly distorts the immensity of AAPLs growth since 2013.  Is that what the creator is trying to accomplish or is there a less malicious reason for doing something like this with a graph?  

  • Reply 3 of 22
    $150 price target by when? LOL... Not by the end of the year.
  • Reply 4 of 22
    fallenjtfallenjt Posts: 3,980member
    $150 price target by when? LOL... Not by the end of the year.
    dont disappoint Sog35.
  • Reply 5 of 22
    eightzeroeightzero Posts: 2,503member

    While I don't doubt the prospect for AAPL doing well, it's my recollection AAPL stock generally rises BEFORE an event, then falls AFTER the event. Simple profiteering on expectation, not actual analysis.

  • Reply 6 of 22
    fallenjt wrote: »
    dont disappoint Sog35.

    Seriously... the guy is buying up as much as he can to try and beat his bet.

    Please: have mercy if he doesn't "quite" move the needle and make it :D
  • Reply 7 of 22
    Once the stock reaches $150, Apple will replace each share with a (new) AppleTV.
  • Reply 8 of 22

    So one set of analysts publishes a bunch of garbage on why Apple is "doomed" and suppress the price. A few weeks later another set of analysts publishes papers on why Apple is a bargain driving the price up. Repeat. Even though by all technical analysis Apple is a low-priced, wildly profitable, stable company.

  • Reply 9 of 22
    icoco3icoco3 Posts: 1,460member
    Quote:

    Originally Posted by sog35 View Post

     

     

    I can't remember, but did you take my $150 bet?


     

    I can't remember, how long are you self banning if it doesn't by years end?  <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

  • Reply 10 of 22
    icoco3icoco3 Posts: 1,460member
    Quote:

    Originally Posted by sog35 View Post

     

     

    For one full year.

     

    So if I admit defeat today I'll be banned till 09/04/16


     

    :(  How about banned from disagreeing with anybody.  No matter what they say, you have to agree.  That would be worse than a total ban.

  • Reply 11 of 22
    512ke512ke Posts: 782member

    Sorry, RBC. It's too late to pump up investor expectations. The recent trouncing of the stock market and the fears about China will drown out any positive or optimistic predictions about APPL. For once in a blue moon, APPL will pop after the company makes a big announcement.

  • Reply 12 of 22
    For reference here is how AAPL has done post announcement. This comes from Forbes at this link (iPhone 6 announcement not included):

    [URL=http://www.forbes.com/sites/chuckjones/2014/09/05/analysis-of-apples-share-price-post-product-announcements/]http://www.forbes.com/sites/chuckjones/2014/09/05/analysis-of-apples-share-price-post-product-announcements/[/URL]

    [IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/62375/width/500/height/1000[/IMG]

    So in general the stock has done favorably over the last few iPhone announcements even a week after the unveiling.
  • Reply 13 of 22
    fallenjtfallenjt Posts: 3,980member
    sog35 wrote: »
    I can't remember, but did you take my $150 bet?
    you took my bet on Apple TV for 2 wk ban since you predicted it'd be from$199-$299 while I predicted it from $99-$149. Look like we won't see you in 2 wks starting from next Wed.
  • Reply 14 of 22
    fallenjtfallenjt Posts: 3,980member
    sog35 wrote: »
    if I can disagree with anyone I won't post.  So its the same thing
    not even...what about not posting anything related to the topics he bet and lost? Ex, he posted on ATV price and lost, he can't post on any topic discussion of TV prices.
  • Reply 15 of 22
    fallenjtfallenjt Posts: 3,980member
    For reference here is how AAPL has done post announcement. This comes from Forbes at this link (iPhone 6 announcement not included):

    http://www.forbes.com/sites/chuckjones/2014/09/05/analysis-of-apples-share-price-post-product-announcements/

    1000

    So in general the stock has done favorably over the last few iPhone announcements even a week after the unveiling.
    the data is pretty much telling you nothing.
  • Reply 16 of 22
    icoco3icoco3 Posts: 1,460member
    Quote:

    Originally Posted by fallenjt View Post





    the data is pretty much telling you nothing.



    Apple stock started it's big climb starting in Feb of 2009 and just kept going overall.  (outside of the Sep 2013 - June 2013 decline)

     

    Those that buy and stay, make money in the long term.

  • Reply 17 of 22
    Increased number of microphones for improved voice/ recording quality ties in with push to more usage of SIRI .
    Look for Cirrus Logic new 55nm smart codec,DAC and embedded software for voice quality and always on support.
  • Reply 18 of 22
    RBC analyst expects more microphones in the iPhone 6S vs iPhone 6 which has three microphones.
    Additional microphones and embedded software to improve voice quality, noise processing, etc.

    This ties in with Cirrus Logic new 55nm smart codec/DAC and embedded software.

    As an example look at the Amazon Echo using 7 microphones.

    Amazon Echo is designed around your voice. It's hands-free and always on. With seven microphones and beam-forming technology, Echo can hear you from across the room—even while music is playing.

    Echo uses on-device keyword spotting to detect the wake word. When Echo detects the wake word, it lights up and streams audio to the cloud, where we leverage the Alexa Voice Service to recognize and respond to your request.
  • Reply 20 of 22
    Agree with the Sog...$130 coming soon...whether it gets to $150 by the end of the year depends on the haters & bed-wetters of Wall Street and not Apple.
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