Neil Hughes
Add Goldman Sachs to the parade of investment firms that revised their price targets on Apple stock this week, following continued gains by the iPhone maker ahead of next week's Worldwide Developers Conference and 7-for-1 stock split.
With shares of Apple repeatedly setting new 52-week highs, analyst Bill Shope increased his price target from $635 to $720 this week in a note to investors, a copy of which was provided to AppleInsider. He expects big things out of Apple's WWDC next week, where he believes the company will show off groundbreaking advancements to its software offerings.
"While Apple's software-only events have rarely captured the same level of excitement as its hardware launches, we believe this should change," Shope said. "Indeed, with the potential for substantial hardware differentiation and few new hardware categories that can substantially impact Apple's $175 billion revenue base, iOS platform differentiation is becoming increasingly critical."
Potential iOS platform enhancements the analyst anticipates include mobile payments, connected "smart homes," and personal health monitoring methods. He sees those additions as increasing the so-called "stickiness" of Apple's mobile platform, ensuring that users stick with iOS when upgrading to their next smartphone or tablet.
"Overall, while the event will be light on new hardware, we believe the potential for substantial platform enhancements at WWDC and throughout this year should serve as positive catalysts for the stock," he said. Indeed, these platform enhancements, upcoming iPhone and iPad refreshes, and Apple's continued installed base expansion should allow for multiple expansion and upward earnings revisions."
Goldman Sachs joins a number of other firms who have been prompted to increase their price targets for Apple this week following the company's gains. Earlier Friday, Wells Fargo Securities revised its "valuation range" for shares of AAPL to between $595 and $640, but Apple quickly exceeded the high end of that range as soon as trading began in the morning.
UBS also increased its price target to $700 on Thursday, and told investors that it expects a significant number of user upgrades to take place when Apple releases its anticipated "iPhone 6" later this year. Barclays also upped its price target to $655 on Wednesday, saying that the new number shows "respect" for Apple's momentum headed into the second half of 2014.
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31 Comments
Where does analysis by people who control billions in Apple stock end, and stock manipulation begin? Inquiring minds want to know.
This shit is hilarious. Not gonna complain about increasing price targets, but these are the same banks that kept severely Downgrading the stock the whole year to ridiculous levels. What's changed? Everyone knew that there would be a wwdc around this time, and Apple has announced nothing. On what fucking basis, in terms of fundamentals, were these banks downgrading, and now upgrading the stock, with such an extreme range? Fucking clowns.
For the sake of your blood pressure, I suggest you stay away from the equities market. Consider investing in tax-free municipal bonds. Your mindset is not suited for equity investing.
So what will the stock do when a mobile payments and smart home platform aren't announced at WWDC. According to 9to5Mac, Apple is just getting started on mobile payments stuff and Gigaom claims the smart home platform is really just going to be a MFI certification program. I have a feeling there is no way this WWDC can possibly live up to the media generated hype. Of course it doesn't help when Eddy Cue says Apple's upcoming product pipeline is the best in 25 years. Way to ratchet up the pressure and expectations.
wtf, they are chasing a train. apple will be at 800 bf the end of the yr. these analysts are morons.