Evercore ups Apple price target from $630 to $700

“Evercore Partners analyst Rob Cihra reiterated an Overweight rating on Apple (AAPL) and raised his price target from $630 to $700 Friday, citing an ongoing belief that the recent iPhone and iPad refreshes have rejuvenated momentum and helped stabilize gross margins, and that Apple still has multiple untapped opportunities evolving its integrated iOS software+ hardware+services model,” StreetInsider reports.

“On the potential China Mobile deal, they see it adding +$0.85 to $1.70 upside to their CY14E EPS model that so far includes just 5mil CHL iPhones but could add another +5 to 10mil. Factoring 10mil unlocked units that might otherwise have been purchased (est > 20mil unofficial iPhones already on CHL) nets 15 to 20mil iPhones potentially to CHL in CY14 for penetration rates they estimate in line with where China Unicom and Telecom are today,” StreetInsider reports. “Chira also continues to forecast iPad growth reaccelerating to +16%Y/Y in CY14 from +11%Y/Y in CY13.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Brawndo Drinker” and “Dan K.” for the heads up.]

Advertisements

7 Comments

  1. What I find somewhat strange is how last year some of the enthusiastic analysts had such extremely high target prices for Apple. Surely, this year, Apple is going to have much higher revenue than last year, so why are the target prices so much lower? Is there some inconsistencies such as profit margins will be lower this year or increased competition from Samsung? I’m not saying target prices matter very much, I’m just wondering why Apple seems to have generally lower target prices than last year. It’s possible that analysts last year were just trying to outdo one another in raising Apple’s target prices and as we well know, Apple didn’t get anywhere’s near them. On paper, Apple would seem to be a stronger company this year than last year. I’m not sure what Brian White has for a target price this time but I’ll bet it’s well below $1,111.

    Hey, I’ll just be happy if Apple gets back to where it was last year at the $705 mark as long as it at least stays above that mark for the remainder of the year.

    1. Target prices are based upon expectations of future growth in revenues and profits. Target prices are also used to fleece private investors. Wall Street made a killing on Apple last year as they speculated and manipulated and drove the price through the roof. Then they drove it down based upon bullshit and defended their reduced expectations as being driven by concerns over competition and reduced margins and the lack of a new breakthrough device. But Apple has continued to make money and execute its long term plan, so now it is time to start pumping the stock price again. Volatility means Wall Street profits, no matter the direction of movement in the price of AAPL.

  2. Went to China recently on business, met with some folks I had not met before. All four had iPhones. They lent me their driver to get to the airport. He had an iPhone too. Yes, they are expensive, but many Chinese will find a way to get the phone that they really want. What I saw was that professionals in China want an iPhone.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.