RBC reiterates $150 target for Apple stock, expects huge 'iPhone 6s' launch

Posted:
in AAPL Investors edited August 2015
Amid continued losses for Apple stock, investment firm RBC Capital Markets has remained steadfast with its $150 price target, once again on Tuesday advising investors to buy in ahead of the anticipated "iPhone 6s" product launch.




Analyst Amit Daryanani of RBC reiterated his "outperform" rating for shares of AAPL in a note to investors, a copy of which was provided to AppleInsider. In it, Daryanani noted that Apple's manufacturing and component purchase commitments as of June 2015 stood at $21.7 billion, a massive 40.9 percent year over year increase.

Noting that it's the highest number he's ever seen from Apple, the analyst said it suggests that the company is not only gearing up for the "iPhone 6s" launch, but could be planning other new products to debut in the coming months.

To Daryanani, Apple's spending signals that the iPhone maker is planning a "material ramp" for new products in the second half of 2015 and the first half of calendar 2016. In his view, the company's current valuation is well below what it should be trading at.

"We believe AAPL's current stock price creates an attractive entry point for investors to benefit from AAPL's ability to sustain revenue and (earnings per share) growth through (fiscal year 2015)," he wrote.

RBC was joined by a number of other investment firms in standing by Apple after last month's record earnings report. Although Apple sold more iPhones than it had ever before in the June quarter, the company still fell short of bullish expectations on Wall Street, contributing to a recent tumble in share prices.

Like Daryanani, most prominent analysts have said they see the current slide as an opportunity for investors to buy into Apple. In particular, the company is expected to debut its next-generation "iPhone 6s" in September, along with a new Apple TV featuring a touchpad remote, dedicated App Store, and Siri support.
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Comments

  • Reply 1 of 47
    dipdog3dipdog3 Posts: 82member
    I'm in for 1 trillion shares!!!
  • Reply 2 of 47
    sflocalsflocal Posts: 4,747member

    So here goes the typical (and predictable) rinse-and-repeat cycle of AAPL.



    Analysts buy AAPL, pump up AAPL

    Just before announcement, they short AAPL also,

    Apple misses "expectations" by one unit,

    Market stupidly reacts, free-for-all downhill

    Wall Street sits back laughing at the stupidity of gullibility of people

    Profit.



    Heck, I might as well start playing that game too...

  • Reply 3 of 47
    Some AAPL trolls claim that inflated expectations from analysts are some ironclad goal for Apple to reach. Failure will only result in a loss in stock value. Do you not see how this pump and dump scheme works? The manipulator are shorting AAPL. The rest of us are suckers. And the worst of us will blame Tim Cook for not hyping watch sales, when the real problem are runaway optimism from analysts. Nobody holds analysts accountable for being wrong; it's Apple that gets punished.
  • Reply 4 of 47
    wizard69wizard69 Posts: 12,892member
    sog35 wrote: »
    Either Apple is going to have a massive end of 2015/2016 or Apple is vastly overestimating demand.
    The third option would be a number of significantly overhauls products. New iMac, Apple TV and even a new Mac Mini could be a big portion of that cost structure. The iMac is rumored to be getting a major overhaul,and the Mac Mini could be going fanless. AppleTV is a given and could come via a massive overhaul include a system specific SoC.

    The point is there is plenty happening to see much of that investment going into non iOhine products.
    I agree with this note.  Fair value of Apple is at least $150.  
    I don't at myself. The market generally tends to over value large companies and does so in Apples case. The price is generally inflated and frankly manipulated such that it has become a very difficult stock to decipher.
    Will it see it this year?  Who knows.  Wall Street manipulators can keep the price down in the short term.

    Actually I see manipulation running the price up but even then will it reach $150 this year? I'd say no. Why, because the economy is in far worst condition than many realize. The only way Apple will get to $150 this year is if people see Safety in the stock and that is unlikely given Apples exposure.
  • Reply 5 of 47
    sacto joesacto joe Posts: 796member
    Quote:
    Originally Posted by sflocal View Post

     

    So here goes the typical (and predictable) rinse-and-repeat cycle of AAPL.



    Analysts by AAPL, pump up AAPL

    Just before announcement, they short AAPL also,

    Apple misses "expectations" by one unit,

    Market stupidly reacts, free-for-all downhill

    Wall Street sits back laughing at the stupidity of gullibility of people

    Profit.



    Heck, I might as well start playing that game too...




    My favorite simile is that of a buffalo herd back in the days when the Indians would drive them towards a cliff, then walk around to the bottom and harvest them. These days, all it takes is a big drop after hours when there are relatively few shares trading hands, which in turn triggers all those "stop losses" in the daytime that are set to automatically fire off, and, Bob's your uncle, it's time to harvest some buffalo hides, aka AAPL stocks. Rinse, repeat.

  • Reply 6 of 47
    irelandireland Posts: 17,684member

    The money grab™

  • Reply 7 of 47
    sacto joesacto joe Posts: 796member
    Quote:
    Originally Posted by wizard69 View Post

    The market generally tends to over value large companies and does so in Apples case. The price is generally inflated and frankly manipulated such that it has become a very difficult stock to decipher.

    Actually I see manipulation running the price up but even then will it reach $150 this year? I'd say no. Why, because the economy is in far worst condition than many realize. The only way Apple will get to $150 this year is if people see Safety in the stock and that is unlikely given Apples exposure.

    AAPL is about as undervalued as stock gets. If it had AMZN's valuation or even MSFT's, I might agree with you, although even then I'd be more inclined to say that AAPL would still be more fairly valued than either of those. Yes, even at TWICE the present price, Apple would be more fairly valued than MSFT or AMZN. You heard it here first.

  • Reply 8 of 47
    slurpyslurpy Posts: 5,190member
    I can't even begin to comprehend the ludicrous fact that pretty much the moved loved company on the planet, with by far the highest brand equity, that can pull in $18B in pure profit a quarter and has $200B in the bank can be valued at $650B or so. Ludicrous. And Hilarious.
  • Reply 9 of 47
    wizard69 wrote: »
    The market generally tends to over value large companies and does so in Apples case. The price is generally inflated and frankly manipulated such that it has become a very difficult stock to decipher.

    Yikes.

    Whatever.....
  • Reply 10 of 47
    sflocalsflocal Posts: 4,747member
    Quote:

    Originally Posted by sog35 View Post

     

     

    What do you think is a fair price for Apple shares then?  $100?  And explain how you reached that figure.




    While the analysts are toasting to gaming the system at the expense of everyone else... Tim Cook is looking down too, laughing as he write another check from the petty-cash fund to buy back AAPL at a great discount.  Eventually, those analysts are going to be begging for scraps since their well will eventually run dry.

  • Reply 11 of 47
    e1618978e1618978 Posts: 6,075member

    http://appleinsider.com/articles/09/01/16/rbc_downgrades_apple_to_underperform_slashes_target_to_70



    RBC downgraded Apple in 2009 right before a 900+% multi-year increase.

  • Reply 12 of 47
    rogifanrogifan Posts: 10,669member
    This morning on CNBC Joe Kernan asked what happens to Apple when someone builds a better mousetrap. And then mentioned Motorola. Is that what Wall Street is thinking now, that Apple could become blackberry at any minute? But why are they thinking this now and not a month ago or three months ago? What's so special about now?
  • Reply 13 of 47
    rogifanrogifan Posts: 10,669member
    Some AAPL trolls claim that inflated expectations from analysts are some ironclad goal for Apple to reach. Failure will only result in a loss in stock value. Do you not see how this pump and dump scheme works? The manipulator are shorting AAPL. The rest of us are suckers. And the worst of us will blame Tim Cook for not hyping watch sales, when the real problem are runaway optimism from analysts. Nobody holds analysts accountable for being wrong; it's Apple that gets punished.

    I keep hearing people say "you're stupid if you think the stock market is based on the past". So basically Apple can't win. If they didn't have record iPhone sales they'd be doomed. If they do have record sales they're also doomed because the market is about the future and not the past and those comps will be awfully tough to beat. It's like heads I win tails you lose.
  • Reply 14 of 47
    rogifanrogifan Posts: 10,669member
    sflocal wrote: »

    While the analysts are toasting to gaming the system at the expense of everyone else... Tim Cook is looking down too, laughing as he write another check from the petty-cash fund to buy back AAPL at a great discount.  Eventually, those analysts are going to be begging for scraps since their well will eventually run dry.

    Is Apple able to buy back shares right now? Kind of scary if they are and the stock is still dropping 4% in a day.
  • Reply 15 of 47
    slurpyslurpy Posts: 5,190member
    Quote:
    Originally Posted by Rogifan View Post



    This morning on CNBC Joe Kernan asked what happens to Apple when someone builds a better mousetrap. And then mentioned Motorola. Is that what Wall Street is thinking now, that Apple could become blackberry at any minute? But why are they thinking this now and not a month ago or three months ago? What's so special about now?

     

    Yes, like somebody can come out of the fucking blue and "build a better mouse trap". It's not that easy. Hundreds have tried, and the media hyped pretty much every new product from every damn company as the "Apple killer". Not a single one has even come close. That fear should have abated by now, as it should be clear as day that noone is in a position to "build a better mousetrap", especially not the core products that Apple sells, which are a result of hundreds of billions of investments and a tight mix of robust software and class-leading hardware. Also, Apple got to where they are today because they were always loved and lusted after as a company. iPhone was successful because people loved their iPods. What competitor today has that kind of advantage against Apple? Google? Samsung? Microsoft? Right. 

     

    Noone is just gonna stumble on something that can somehow compete with that without major drawbacks. Steve Jobs is long gone, Apple has proven that is can survive (and flourish, exploding in popularity and success) just fine without him, it's in a better position today than it EVER has been in it's history, is relentlessly investing in itself and moving forward, yet still seen as a startup that can collapse at any second. Unreal. 

  • Reply 16 of 47
    bugsnwbugsnw Posts: 717member

    Apple creates an enormous opportunity for those that sort of game the system. Apple has a bit of a miss on some target that some analyst overestimated. The stock gets overly punished. I think the market is hoping to chase out the weak of spirit.

     

    Then, predictably, the next quarter rolls around and it's a doozie. The stock rebounds. These same analysts that were fearing death are now reaping profits.

     

    It just seems to me that any opportunity to punish a near-perfect company is gleefully taken by wall street, who understand that Apple is undervalued and these short durations of 'punishment' where the stock drops will always be rewarded later.

     

    It is manipulation but that's wall street. Personally, i'm hanging on because it's just now getting exciting. Buy on the dip if you can....wall street surely is.

  • Reply 17 of 47
    rogifanrogifan Posts: 10,669member
    sog35 wrote: »
    The last 2 weeks have been the most incredible media smear campaign I've ever seen on a single company.

    The amount of lies that have been spewed - Watch lies, AppleMusic lies, China lies, iPhone decline lies, ect have been unmatched.

    Previously I've said we should ignore this noise.  But now it looks like it really is having a material effect on the stock.  I think its time Apple goes on the offensive.

    Hey I've been saying forever that Apple needs to go on the offensive and not let others control the narrative as perception often becomes reality. Of course I was shouted down and told this doesn't matter, nobody cares etc. Well it does matter and negative sentiment on the stock can turn into negative sentiment on the company. Pull up any story today on the stock slide and the comments section is full of people claiming the Watch is a dud. Ok I own one now and the only time it leaves my wrist is to charge or when I'm in the shower. I love. Yet the average person on the street probably thinks it's a failure. Same with Apple Music. There are some legitimate issues that Apple needs to address but I'll bet most people who don't have large libraries of personal music are enjoying it without much issue. If Eddy Cue went on Twitter and said Apple knows there are some issues and they're working to fix them that would go a long way. This hunker down and stay quiet mentality is doing no good.
  • Reply 18 of 47
    robin huberrobin huber Posts: 3,295member
    AAPL trend over two ears has been a steady climb punctuated be short term drops. This, while under constant FUD attacks and stock manipulation. I see no reason why it won't continue. I predict $150 by next February.
  • Reply 19 of 47
    rogifan wrote: »
    This morning on CNBC Joe Kernan asked what happens to Apple when someone builds a better mousetrap. And then mentioned Motorola. Is that what Wall Street is thinking now, that Apple could become blackberry at any minute? But why are they thinking this now and not a month ago or three months ago? What's so special about now?

    Ah, as one of my investment manager friends calls him, "Clueless Joe."
  • Reply 20 of 47
    SpamSandwichSpamSandwich Posts: 31,491member
    Quote:

    Originally Posted by Robin Huber View Post



    AAPL trend over two ears has been a steady climb punctuated be short term drops. This, while under constant FUD attacks and stock manipulation. I see no reason why it won't continue. I predict $150 by next February.



    Haha... I don't think so. The stock is in an inexplicable slump right now, or rather it's in a slump which mainly benefits the biggest traders.

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