Brean Capital kicks off coverage of Apple stock with $160 price target
Brean Capital began coverage of Apple stock on Monday, calling for a $160 price target, and for revenue to beat Wall Street consensus for the next three years, driven by higher-than-expected iPhone sales.
Analyst Ananda Baruah issued a note to investors on Monday, a copy of which was provided to AppleInsider, forecasting annual revenue figures for 2015 to reach $232 billion. He sees Apple's revenue ballooning to $295 billion by 2017, exceeding Wall Street expectations.
Brean shipment figures call for 228 million iPhones in 2015, above market consensus of 222 million. This alone is anticipated to boost Apple's outlook, but Baruah further estimates than iPhones typically carry a gross profit margin of 45 percent, exceeding the roughly 40 percent margin for Apple as a whole.
The iPhone 6 Plus is thought to have an even greater 60 percent margin, and account for as much as a third of iPhone shipments, compared with a Street-suggested proportion closer to a quarter.
On the matter of operating expenditures, Baruah said that the company should be able to ramp them down, percenage-wise, now that both the iPhone 6 and the Apple Watch have been released.
Apple is set to announce March-quarter results later on Monday. The centerpiece of the announcement will be a conference call with analysts and journalists scheduled for 2 p.m. Pacific time, or 5 p.m. Eastern.
Analyst Ananda Baruah issued a note to investors on Monday, a copy of which was provided to AppleInsider, forecasting annual revenue figures for 2015 to reach $232 billion. He sees Apple's revenue ballooning to $295 billion by 2017, exceeding Wall Street expectations.
Brean shipment figures call for 228 million iPhones in 2015, above market consensus of 222 million. This alone is anticipated to boost Apple's outlook, but Baruah further estimates than iPhones typically carry a gross profit margin of 45 percent, exceeding the roughly 40 percent margin for Apple as a whole.
The iPhone 6 Plus is thought to have an even greater 60 percent margin, and account for as much as a third of iPhone shipments, compared with a Street-suggested proportion closer to a quarter.
On the matter of operating expenditures, Baruah said that the company should be able to ramp them down, percenage-wise, now that both the iPhone 6 and the Apple Watch have been released.
Apple is set to announce March-quarter results later on Monday. The centerpiece of the announcement will be a conference call with analysts and journalists scheduled for 2 p.m. Pacific time, or 5 p.m. Eastern.
Comments
Is this the same firm that had to change its name from Brean Murray Carret & Co. because of securities fraud?
I am optimistic. I am also anticipating a market correction soon. How big? I cannot say.
I am optimistic. I also hold much, much more AAPL than you do and that gives me a good laugh. I'm not worried about near term fluctuations, whereas you seem far more concerned. If you are absolutely sure of your $150 target why wouldn't you ignore your own 20% rule? A completely optimistic person would shift 100% of their holdings to AAPL.
If you are certain of your $150 target then your insistence on a very conservative 20% allocation for AAPL is nonsensical. You're either optimistic and certain or you aren't, because any short term risk would be irrelevant compared to the long term gain.
Face it, you're a timid day trader, not a confident long term investor and yes, I do believe the broader market will see another bubble and I'm still going to be in the market. If Apple sees a dramatic price drop for any reason I'll be buying more.
My portfolio is like 60% Apple. Is it a huge risk? Yes. Has it served me well? Yes.
P/E ratio has historically proven to be a useless indicator for AAPL. Quite honestly, consumer sentiment is a better indicator of their strength or weakness going forward. The day Apple is universally loathed I will sell everything.
All you really need to do is look at the short term gains minus capital gains costs and expenses, versus long term gains and not attempting to time the market.
Whenever I see a massive stock fluctuation, whether caused by general market pressures or fabricated analyst pressures, I'll buy or consider buying more. I see no reason to sell.
This is why Wall Street both loves and fears Apple. They are infinitely manipulable based on emotion, rather than pure mathematical or financial analysis. Compare with massively money losing Amazon. Wall Street is a circus.
If you are certain of your $150 target then your insistence on a very conservative 20% allocation for AAPL is nonsensical. You're either optimistic and certain or you aren't, because any short term risk would be irrelevant compared to the long term gain.
Face it, you're a timid day trader, not a confident long term investor and yes, I do believe the broader market will see another bubble and I'm still going to be in the market. If Apple sees a dramatic price drop for any reason I'll be buying more.
Honestly, you either know very very little about investing concepts or you are making outrageous claims to provoke a response.
No one in their right mind would consider putting 20% of their wealth in a single stock to be conservative or very conservative. This is a high risk move...objectively speaking. I have about 10% of my wealth in Apple because I'm bullish on the stock.
It also sounds like you have very little money invested. I can't imagine someone with $500K or $1M+ saying the kind of crazy stuff you're saying.
I assure you I have a very large investment in AAPL and I'm comfortable with fluctuations that would give most investors heart attacks. This wasn't always the case. After having gone through the dotcom implosion and the 2008 meltdown, I've gotten used to seeing huge losses on paper and not panicking too much. ???? Those times are opportunities, not the time to run screaming.
Nope.
And by the way: http://m.imore.com/apple-announces-q2-2015-results-million-iphones-million-ipads-million-macs-billion-revenue