Rosenblatt Securities hikes AAPL target to $189 on overall strength

Posted:
in General Discussion edited September 2022
Rosenblatt Securities is raising its price target for AAPL to $189 in light of profound consumer interest in the Apple Watch Ultra and iPhone 14 Pro Max.

Apple Watch Ultra
Apple Watch Ultra


In a note to investors seen by AppleInsider, Rosenblatt surveyed over 1,100 adults in the US. The survey found that many already had bought or are expecting to buy an iPhone 14 model in the next 12 months.

The most popular choice was the iPhone 14 Pro Max, which matches data from other investment firms showing that the model has been the most popular. The iPhone 14 Pro came in second place at 26%.

In particular, 38% of consumers showed strong interest in the Emergency SOS via Satellite feature exclusive to the iPhone 14 lineup. The feature lets people contact emergency services outside of Wi-Fi and cellular coverage.

Survey respondents also favored the Apple Watch Ultra. About 47% of the surveyees said that they already had one or plan to buy one in the next 12 months, despite Apple marketing this model toward extreme athletes.

The mix for Pro versus non-Pro models is said to be shifting to 85% to 90% favoring Pro, for iPhone 14. This is compared to the iPhone 13 Pro mix of around 60% to 65% at this point in the cycle.

In China, iPhone 14 Pro Max wait times are 42 days, 12 days longer than in the US. While there are certainly supply challenges, this still suggests stronger demand than expected in a market that is about 15% of Apple's total iPhone sales volume.

Rosenblatt's new price target is an increase from the $160 target it declared in July 2022. As part of the calculation the firm's estimates for Apple's fiscal fourth quarter of 2022 for revenues, adjusted EBITDA, EPS, and FCF per share were increased by 4%, and fiscal year 2023 was raised by 5%.

The data from Rosenblatt is similar to other surveys and supply chain channel predictions. Daniel Ives and John Katsingris from Wedbush showed the strong demand for the iPhone 14 Pro models in their investor note on September 28.

Read on AppleInsider

Comments

  • Reply 1 of 9
    A sensible analysis. 
    watto_cobra
  • Reply 2 of 9
    davgregdavgreg Posts: 1,000member
    Apple has already cut the production increase in iPhones which signals sales are not as much as expected. The economy is not good and getting worse in many parts of the world.
    As to the hardware, the 14 Pro has nothing to make me want to get it and I am in the upgrade program. The satellite SOS program works with the Ultra Watch, BTW - you need not get the 14 Pro to use it.
    I have the Ultra Watch and seriously doubt the 14 Pro is in the works. Unless there is a significant improvement in 5G performance. The changes to the camera are not enough to justify switching.
    Now, lets see what the new iPad Pro is going to be like. 
  • Reply 3 of 9
    I sure hope so! AAPL has been taking a beating, going from $174.55 mid August to now $141.84. Big YIKES  
    watto_cobra
  • Reply 4 of 9
    davgreg said:
    Apple has already cut the production increase in iPhones which signals sales are not as much as expected. The economy is not good and getting worse in many parts of the world.
    As to the hardware, the 14 Pro has nothing to make me want to get it and I am in the upgrade program. The satellite SOS program works with the Ultra Watch, BTW - you need not get the 14 Pro to use it.
    I have the Ultra Watch and seriously doubt the 14 Pro is in the works. Unless there is a significant improvement in 5G performance. The changes to the camera are not enough to justify switching.
    Now, lets see what the new iPad Pro is going to be like. 
    Bloomberg report by nobody Taiwanese Debby Wu is fake 

    real Apple supply chain guy with a track record Ming Chi Kuo said Apple
    never had a plan to increase to 96 million to begin with 

    also I went from 13 pro max to 14 pro. Trust me, this is a bigger upgrade than when I went from 11 pro max to 13 pro max

    brand new camera system and this screen is best ever 
    edited September 2022 watto_cobra
  • Reply 5 of 9
    A sensible analysis. 
    You're kidding right!? Based on a US only survey, that's more marketing for Rosenblatt securities than a 'sensible analysis'.
    FileMakerFellerwatto_cobra
  • Reply 6 of 9
    A sensible analysis. 
    You're kidding right!? Based on a US only survey, that's more marketing for Rosenblatt securities than a 'sensible analysis'.
    So bank America took the fake Bloomberg survey refuted by all the people with past track records on Apple is to you sensible?

    pro models are 47 days wait in China vs 37 days for 13 pro last year, and last year had supply chain issues 

    so they are basically selling more pro models this year per day due to easing supply chain but the wait is 10 days longer

    do the math 
    FileMakerFellerwatto_cobra
  • Reply 7 of 9
    crowleycrowley Posts: 10,453member
    I can’t imagine the Apple Watch Ultra demand being worth all that much. It’s about as niche as Apple products get.  
  • Reply 8 of 9
    lkrupplkrupp Posts: 10,341member
    While it may be a sensible analysis the market has gone Bear big time and is dropping like a rock, AAPL along with it.
    gatorguywatto_cobra
  • Reply 9 of 9
    A sensible analysis. 
    You're kidding right!? Based on a US only survey, that's more marketing for Rosenblatt securities than a 'sensible analysis'.
    And bad marketing at that. Expecting a $29 per share increase based on a very small survey of purchasing intentions is... well, it's not rational analysis based on evidence.
    gatorguywatto_cobra
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