Neil Hughes
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.
Malcolm Owen
Andrew O'Hara
William Gallagher
47 Comments
I'm in for 1 trillion shares!!!
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...
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.
[quote name="sog35" url="/t/187480/rbc-reiterates-150-target-for-apple-stock-expects-huge-iphone-6s-launch#post_2756642"] Either Apple is going to have a massive end of 2015/2016 or Apple is vastly overestimating demand. [/Quote] 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. [Quote] I agree with this note. Fair value of Apple is at least $150. [/Quote] 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. [Quote] Will it see it this year? Who knows. Wall Street manipulators can keep the price down in the short term. [/quote] 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.
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.