Strong Chinese iPhone 5 launch taken as another sign Apple stock is undervalued
Two prominent investment firms view the record breaking opening weekend for Apple's iPhone 5 in China as a sign that the company's shares are undervalued, with strong performance likely to show up in this quarter's financials.
RBC Capital Markets said this week the news that Apple sold two million iPhone 5 units in China over its opening weekend as "a positive as the company continues to outpace the previous iPhone 4S launch setting up for" a positive December quarter. The firm stuck with its Outperform rating for AAPL, as well as its $750 price target.
Meanwhile, analysts at Wells Fargo see a strong Chinese open as keeping Apple on track to meet or beat Wells Fargo's prior estimate of 46 million iPhones sold in the December quarter. The firm sees the potential for some seasonal drop-off following a strong holiday quarter, but Wells Fargo maintained an Outperform rating, with a valuation range between $710 and $730.
Wells' analysis, though, did see potential risks for Apple in the near future, with slowing growth a possibility due to tough comparisons, as well as the possibility of disruptions due to legal disputes and potential supply constraints. The report also drew attention to what it called "evolutionary versus revolutionary steps in innovation" as possible cause for concern.
Wells Fargo had an overall positive outlook on Apple, though, saying it believes the iPhone 5 will wind up as "the largest product cycle in consumer electronics' history," and calling Apple's brand, innovative DNA, and ecosystem "unmatched" within the industry and sure to result in a continuation of Apple taking value share across its core markets.
Other analysts have also reacted positively to Apple's blockbuster start for the iPhone 5 in China. Sales were so strong that Apple issues a press release to tout them on Sunday night ? the first time the company has ever done so for sales in that region.
RBC Capital Markets said this week the news that Apple sold two million iPhone 5 units in China over its opening weekend as "a positive as the company continues to outpace the previous iPhone 4S launch setting up for" a positive December quarter. The firm stuck with its Outperform rating for AAPL, as well as its $750 price target.
Meanwhile, analysts at Wells Fargo see a strong Chinese open as keeping Apple on track to meet or beat Wells Fargo's prior estimate of 46 million iPhones sold in the December quarter. The firm sees the potential for some seasonal drop-off following a strong holiday quarter, but Wells Fargo maintained an Outperform rating, with a valuation range between $710 and $730.
Wells' analysis, though, did see potential risks for Apple in the near future, with slowing growth a possibility due to tough comparisons, as well as the possibility of disruptions due to legal disputes and potential supply constraints. The report also drew attention to what it called "evolutionary versus revolutionary steps in innovation" as possible cause for concern.
Wells Fargo had an overall positive outlook on Apple, though, saying it believes the iPhone 5 will wind up as "the largest product cycle in consumer electronics' history," and calling Apple's brand, innovative DNA, and ecosystem "unmatched" within the industry and sure to result in a continuation of Apple taking value share across its core markets.
Other analysts have also reacted positively to Apple's blockbuster start for the iPhone 5 in China. Sales were so strong that Apple issues a press release to tout them on Sunday night ? the first time the company has ever done so for sales in that region.
Comments
Quote:
Originally Posted by herbapou
Apple told the China number in an attemp to help the stock. About time they do something about it...
Yeah, I'm sure they did it (specifically) to help the stock price.
Maybe they are a company and want to announce good results of things they do?
As expected... the positive reports are starting to come in. Now they're going to drive the stock back up to $700.
I fully expected AAPL to be driven down into the high 400s and for it to take at least another week to see any positive news.
Quote:
Originally Posted by Chris_CA
Yeah, I'm sure they did it (specifically) to help the stock price.
Maybe they are a company and want to announce good results of things they do?
Maybe. But if you're a publicly traded company, you owe it to your shareholders to do this, especially when the stock has slide like Apple's has. I'm not saying Apple is doomed (TM), as I personally think the stock is undervalued as well. But facts are facts.
Quote:
Originally Posted by Chris_CA
Quote:
Originally Posted by herbapou
Apple told the China number in an attemp to help the stock. About time they do something about it...
Maybe they are a company and want to announce good results of things they do?
Yeah, to help the stock price.
I can guarantee you that Apple, whether back in the day when Steve was running the company, or today with Tim Cook at the helm, they are not doing or saying things to try to manipulate stock prices. They are executing their plans and running the business. The stock market is manipulated enough by the Street, and it's been clear for the past 5+ years that Apple is undervalued and for some reason, not treated with the same respect that some other questionable businesses.
Quote:
Originally Posted by RFHJr
So much for the "one person in line..." story. Total fiction and I am glad that Tim Cook set the record straight.
not a total fiction at all.
There could have been merely one person in line. Because that might be the only person that didn't know that you have to lottery online because of all the dickhead resellers and their behavior over the past couple of launches. So the rest of the sales were from the lottery and since they were paid for there was no need to line up to be sure to get a phone.
Quote:
Originally Posted by jmgregory1
I can guarantee you that Apple, whether back in the day when Steve was running the company, or today with Tim Cook at the helm, they are not doing or saying things to try to manipulate stock prices.
No but they do have a duty to reveal some bits of information and that is what they did and still do. If it changes the stock price okay, if not, that's okay too. And sometimes even Steve and Tim might decide on timing an announcement in the hopes of it causing a raise in price. Nothing wrong with that. Just as long as they don't start designing etc by how it will change the stock price. Last thing I want is Apple getting in bed with a company simply because the analysts will talk positive about the deal even though there's no benefit to me as an end user
/s
Say nothing of the financial gain, I can't wait for this stock to go back up into the $700's so that at least some of the ignorant journalists can be exposed as imbeciles.
Quote:
Originally Posted by jmgregory1
I can guarantee you that Apple, whether back in the day when Steve was running the company, or today with Tim Cook at the helm, they are not doing or saying things to try to manipulate stock prices. They are executing their plans and running the business. The stock market is manipulated enough by the Street, and it's been clear for the past 5+ years that Apple is undervalued and for some reason, not treated with the same respect that some other questionable businesses.
Like Amazon?
It still astounds me that they release no sales figures on their products and the market loves them - Apple does and gets hammered.
Quote:
Originally Posted by isaidso
Yeah, to help the stock price.
when 100s or 1000s of "analysts" make up lies to sink the stock, Apple releases facts to prove these "analysts" are wrong.
Originally Posted by DethByUngaBunga
…I can't wait for this stock to go back up into the $700's so that at least some of the ignorant journalists can be exposed as imbeciles.
They won't be, though.
They won't be fired. They won't be jailed. They'll be given a raise.
Quote:
Originally Posted by DethByUngaBunga
Say nothing of the financial gain, I can't wait for this stock to go back up into the $700's so that at least some of the ignorant journalists can be exposed as imbeciles.
Many of the things they are saying about Apple, unless an analyst has come right out and said that Apple is doomed, still might be true. Even then, it still doesn't account for the current value of the stock.
You'd be surprised at how little information a company is obligated to release. They most certainly do NOT have any duty to release the information covered by this thread.
Of course. They managed to drive the stock down far enough that ANY moron can see that it's a 'buy' - so people will remember their 'buy' recommendations, not the activity that drove the stock down.
I think it's interesting that a negative analyst report drives the stock down a couple percent, but a positive report only increases the price by a few tenths of a percent.
There's clearly a big pool of negativity out there.
[URL]http://forums.appleinsider.com/t/149970/apple-stock-seen-hitting-2-000-by-the-end-of-2015#post_2107667[/URL]
How could this be?
I thought that in the entire country of China, only one Chinese guy was standing in line in front of an Apple store. The iPhone was obviously a huge failure, an Android tablet like flop.
And now, it turns out that this reporting was misleading, wrong, inaccurate and deceptive?
Were the retards who dare to call themselves journalists even aware of the new reservation system put in place by Apple?