UBS raises Apple price target to $700, expects significant user upgrades for 'iPhone 6'
UBS on Thursday became the latest financial firm to raise their price target for Apple, with a new 12-month forecast of $700 on what is expected to be a blockbuster launch for the next-generation iPhone.
Analyst Steven Milunovich issued a note to investors, a copy of which was provided to AppleInsider, revealing the price target increase from its previous level of $625. The new $700 target comes as Milunovich is increasingly confident that iPhone sales in the U.S. will be particularly strong for Apple's so-called "iPhone 6," expected to debut later this year.
The analyst cited survey data from YouGov.com that suggested more than half of all U.S. iPhone users are due for an upgrade over the next 10 months. As a result, Milunovich believes that a number of iPhone 4 and iPhone 4S owners skipped the iPhone 5 and iPhone 5s upgrade cycle, and may be holding out for Apple's next-generation model.
Apple's next iPhone is rumored to come with a larger screen in two sizes of 4.7 and 5.5 inches. Milunovich believes those phones, along with the potential for an Apple-built wearable device, are good reasons for investors to buy in to AAPL stock.
"Investor sentiment has been somewhat apathetic as reflected by two-thirds of funds owning Apple being underweight," he wrote. "That view may change starting next week."
Next week, of course, is Apple's Worldwide Developers Conference, where the company is expected to announce the next major updates to its iOS mobile operating system and OS X Mac platform. New iPhones are expected to follow later this year, likely around September.
The old UBS price target of $625 went underwater earlier this week as Apple eclipsed it. The higher $700 target from UBS also comes after Barclays increase their own price target to $655 on Wednesday.
Other prominent analysts tracked by Apple do remain underwater, including Maynard Um of Wells Fargo, who has a "valuation range" of between $515 and $585 for Apple, and Rod Hall of J.P. Morgan, who maintains an overweight rating with a target of $623. Shares of Apple are up again on Thursday as of early afternoon trading, as Wall Street appears to be warming up to
Analyst Steven Milunovich issued a note to investors, a copy of which was provided to AppleInsider, revealing the price target increase from its previous level of $625. The new $700 target comes as Milunovich is increasingly confident that iPhone sales in the U.S. will be particularly strong for Apple's so-called "iPhone 6," expected to debut later this year.
The analyst cited survey data from YouGov.com that suggested more than half of all U.S. iPhone users are due for an upgrade over the next 10 months. As a result, Milunovich believes that a number of iPhone 4 and iPhone 4S owners skipped the iPhone 5 and iPhone 5s upgrade cycle, and may be holding out for Apple's next-generation model.
Apple's next iPhone is rumored to come with a larger screen in two sizes of 4.7 and 5.5 inches. Milunovich believes those phones, along with the potential for an Apple-built wearable device, are good reasons for investors to buy in to AAPL stock.
"Investor sentiment has been somewhat apathetic as reflected by two-thirds of funds owning Apple being underweight," he wrote. "That view may change starting next week."
Next week, of course, is Apple's Worldwide Developers Conference, where the company is expected to announce the next major updates to its iOS mobile operating system and OS X Mac platform. New iPhones are expected to follow later this year, likely around September.
The old UBS price target of $625 went underwater earlier this week as Apple eclipsed it. The higher $700 target from UBS also comes after Barclays increase their own price target to $655 on Wednesday.
Other prominent analysts tracked by Apple do remain underwater, including Maynard Um of Wells Fargo, who has a "valuation range" of between $515 and $585 for Apple, and Rod Hall of J.P. Morgan, who maintains an overweight rating with a target of $623. Shares of Apple are up again on Thursday as of early afternoon trading, as Wall Street appears to be warming up to
Comments
$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days.
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What would their market cap be if they did hit $700 after the split?
Wouldn't that be a nice early Christmas present?
Man this reminds me of 2012. Same pattern. When it does hit $700, I'm out for sure. Can't stand the stress of Apple's stock roller-coaster.
Apple stock purchases should come with a year’s supply of thorazine. It’s an “ignore me” stock, after all.
Set it and forget it!
When it hits $700 for us, it'll be hitting $100 for others. It'll keep climbing at that point.
The new Ronco Ear Rotisserie by Beats by Dre by Apple!
The analysts are worse than worthless.
They're going to pump up APPL then try to bash it down.
I just wish there was more coverage about how all the nasty articles and doom and gloom prophecies about APPL were wrong.
About how the 5C is a success not a flop.
About how Apple continues to innovate.
About how literally the majority of analysts made outlandishly wrong and bad predictions about APPL, totally ignoring fundamentals.
I was out of AAPL for a little while so wanted to hold a few more again. I just bought three shares cause I want to own 21 in a few weeks. Yeah, if it does go to $700 the return will put me somewhere north of ecstatic.
" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" /> Free drinks for everyone here if that happens within one year.
$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days.
" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />
What would their market cap be if they did hit $700 after the split?
Shhh.... don't tell the analysts that. Eat popcorn and sit back.
I am thinking that this respond ant was still thinking if the Apple pre-split price, a natural mistake. Take care.
Ed
861.38 million shares x $631.52 = $544.01 billion for the current market cap.
$631.52 ÷ 7 = $90.22 per share after the split.
$700 ÷ $90.22 = 7.76 times the current value to reach $700 per share.
7.76 x $554.01 B = 4.22 trillion for that market cap.
PS: To become a trillion dollar company the stock price, post split, will need to be about $165 per share.
Until the split happens all values, even future ones, should be indicated based on what how the stock is measured today.
I think hitting $165 post-split is achievable.
$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days.
" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />
What would their market cap be if they did hit $700 after the split?
The $700 price target would be adjusted after the split...so the actual call is it to be $100 in 12 months. They'll blow by that in 12 days!
Not sure why they don't use that figure with a note...but I won't complain if we go back up to $700 in 1yr.
$700 in 12 months, huh? That’s a tall order for Apple to fill, given that it’ll be $85 in a few days.
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It's a good example of how specious and arbitrary these analyst targets really are. There's a 7-for-1 split on the horizon, and the easiest way for the analyst to rig his (or her) prediction is to make it an easy multiple of 7. Said analyst is already befuddled because AAPL has exceeded their 560 forecast, and the next big, round number is 700. So let's predict that. Yeah, that's the ticket.
I am hoping it drop to about 60-70 after the split, I will add another 400 share at that price point.....