Neil Hughes
Following Apple's record earnings report this week, investment firm RBC Capital Markets raised its price target to $110, recommending that investors buy ahead of what is expected to be a "busy fall" for the iPhone maker.
Analyst Amit Daryanani issued a note to investors on Wednesday, a copy of which was provided to AppleInsider. In it, he has maintained his firm's "outperform" rating, and raised the target on AAPL stock from $100 to $110.
With $164 billion in cash amounting to a whopping $22 per share, Daryanani believes shares of Apple are undervalued at their current levels. And in terms of its product lineup, he sees continued growth opportunities in both the tablet and smartphone spaces.
Along with his new current target of $110, Daryanani has an "upside scenario" for Apple of $125 per share. He could see the company reaching that level if Apple were able to penetrate the low-end smartphone market while maintaining margins at or above the 40 percent level.
At its current sub-$100 price, Daryanani believes shares of Apple are at an attractive entry point for investors to benefit from the company's ability to sustain revenue and earnings-per-share growth through fiscal year 2015.
Among the catalysts he sees for Apple moving forward are ramp-up in availability of an anticipated "iPhone 6," new iPad models this fall, the potential for major new product lines such as a so-called "iWatch," and improvements in the company's capital allocation policy.
"We believe AAPL has multiple levers ahead of it that will drive further revenue acceleration," he wrote. "Notably, we believe emerging market penetration will remain a key and material revenue driver for the company over the next several years."
RBC joins a number of investment firms that have increased their price target on AAPL in recent weeks ahead of the lucrative fall shopping season. Other firms include UBS ($115), Barclays ($110), Evercore ($115), Morgan Stanley ($110), J.P. Morgan ($108), and Needham ($97).
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13 Comments
Amit Daryanani? What happened to their old guy? Fired?
Originally Posted by sog35
I have been much more accurate then these clowns
Prove it. I want to see scanned and notarized copies of emails, with timestamps.
On a related note, I correctly predicted the closing price of AAPL stock correctly for the last 17 years. 100%. Trust me, it's true.
Venture Beat claims Apple is working on a range of smart watches with Swatch. http://venturebeat.com/2014/07/23/apple-is-working-with-swatch-others-on-a-family-of-smartwatches/
My target is $110 EOY
$125 by Feb2015
I have been much more accurate then these clowns
When the stock was $400 last year my target was:
$82 EOY
$100 July2014
I tend to agree with the exception of the upper end could reach $150-$200.
Reason: iWatch
This is the only product that Apple will make that people may want to own more than one (possibly the iPod being the exception). People who are into time pieces may own several. Casual, evening out, gifts, etc.
Apple has endless reason to release new watches outside the technology cycle. Having the iOS tech the same, Apple can create watches with many, many different faces and mechanics. Such as the Kairos.
Events:
Father's day
Mother's day
Graduation
Birthday
Christmas (or your holiday of choice)
Anniversary
Ive Signature Addition (micro signed by Sir Ive himself)
Retirement
Materials: each with a number of leather/metal band combinations.
Aluminum
Titanium
Liquidmetal
Platinum
Don't forget a number of diamond combinations!
I bet you could add several to the event list yourself. These event watches can be released to be timed (yes) with their event, and just during the year. Technology releases as normal schedule allows.
No other product that Apple has released gives them this flexibility and ability to sell multiple devices to the same person. They can release a new watch face every quarter for the next 10 years and not run out of ideas.
[fanboy out of breath from excitement, must go rest....]
Oh yes Apple will definitely be looking to expand into the bottom end crapware market. /s [quote name="sog35" url="/t/181537/rbc-ups-apple-price-target-to-110-in-anticipation-of-busy-fall-for-iphone-iwatch#post_2568410"] look at my post history [/quote] Touché.