“The Apple Watch may be a $26 billion business by 2018, Deutsche Bank analyst Sherri Scribner predicted in a note Thursday,” Jennifer Booton reports for MarketWatch.
“However, she only reiterated a hold rating on Apple Inc.’s stock, saying a limited impact from the Watch and Apple’s heavy reliance on the iPhone offer ‘limited catalysts’ to drive shares higher over the next few quarters,” Booton reports. “Her $110 price target implies a 14% share-price decline from Apple’s $128.54 closing price on Wednesday. ”
Read more in the full article here.
MacDailyNews Take: That “hold” rating and $110 price target are perplexingly bearish.
As Deutsche Bank & Goldman Sachs are the two banks working for Apple Inc. on the Share Buyback program, depressing the Share price would help!!
There are 2 kinds of analysts: Buy Side and Sell Side, and they aren’t as you would imagine.
Deutsche Bank is a Buy Side broker, meaning that when AAPL drops to its target their recommendation will become Buy.
On the other hand, Zack’s is a Sell Side investment bank. When AAPL attains its target their recommendation changes to sell.
Both are Bullish on Apple/AAPL. Their targets are about entry and exit points, and not where they think AAPL is headed.
Then you have true Bears (Berenberg Bank at $60 and Pacific Crest at $96), neither of which can see the trend away from feature phones to smart phones. Further, neither recognizes the new jobs Apple has created for the iPhone (Apple Watch integration, Health Kit, Home Kit, and Apple Pay) that will drive increased adoption of the iPhone.
Apple may not make much in direct revenue from Apple Pay, but it will make tremendous revenue gains from Apple Pay induced revenue gains.
The same is true of the Apple Watch, with the added benefit of Apple Watch revenue.
Consensus Sell Side Price Target for October is $160 (range: $155 – $165). You can expect that target to move upwards after April and July Earnings/Guidance reports.
Since basically all “analysts” are profoundly ignorant, and mostly exist not to write honest analytical notes to their clients, but to manipulate them and the markets one way or another, both positive and negative prognosis from analysts barely contain accurate/useful information.
Paying attention to analysts seems to be a case of caveat emptor anymore as analysts are in the unique position of really working for themselves and their own interests with a pulpit to manipulate the clueless. You’d think more people & investors would catch on to this scam.
It’s like when a reporter reports on something you know a lot about firsthand and you realize how faulty the reporting is. Same as with the knowledge and potential of the unique case of Apple with all of us and analysts applying conventional thinking, which often doesn’t make sense even then either and can only be excused away as stock price manipulation, or more darker nefarious reasons.
The only scam is allowing people, with limited knowledge of how the markets work, to invest unsupervised. Its like taking candy from children.
NOTE: I am a retired businessman and have never worked for an investment firm in any capacity. I do give free investment advice to friends and family.
It sounds like too many of limited knowledge are on the loose. And you’re right, you have to let yourself be scammed. An educated investor is a much wiser one.
Amazing, isn’t it, that the very people that have never read a 10Q (let alone understood it), have never listened to a conference call, can’t coherently describe the importance of YoY Net Income comparisons, have never compiled a Revenue/Net Income projection, or complied a price target, know nothing about positioning a Company/product to address specific markets, are the ones describing WS analysts as ignorant.
Watched this analyst on CNBC. Nothing she said was considered new except the low price target of 110.00
She’s trying to compete with Eddie Zabitsky and Colin Gillis for the “Loonie Lowball” award.