Why Apple innovations could boost stock 20% this year

“Apple shares could have upside of more than 20% this year, Wedge Partners Analyst Brian Blair tells Barrons.com,” Dimitra DeFotis reports for Barron’s.

“Wedge Partners doesn’t publish price targets, but Blair tells us he thinks the stock could go ‘to $600 or $650 over the next 12 months,'” DeFotis reports. “Shares of Apple (AAPL) are up 54 cents, or 0.10%, at $536.61.”

DeFotis reports, “Blair issued a favorable note this morning on Apple that concludes that while the company is ‘at an impasse,’ R&D spending, potential production forecasts and Apple’s need to grow all point to ‘a coming wave of innovation.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Bill” for the heads up.]

7 Comments

  1. I do think that by this time next year we will have seen just a ton of new things from Apple:

    – the iWatch (or whatever its called) seems imminent.
    – iBeacons are here and waiting for broad adoption.
    – a 4K monitor seems right around the corner given that the MacPro supports up to 4 of them and Apple’s latest OS build now addresses compatibility issues.
    – the car thing is done and will only improve from here.

    But I don’t think Apple will get into the TV business. It seems to me that the answer is continued improvement in the puck – faster processor (64 bit!), apps (!), more content (HBO?) – all stuff that’s basically already here. The only thing that’s not clear is the user interface. The existing remote isn’t a great answer but I’m not sure that hand motion is either. Perhaps Siri.

    But the TV? There’s just no money in it. Panasonic which made the very best set has dropped out of the market.

    1. There’s no money in TV unless you have something revolutionary that no one else has, for which you can charge a premium. Apple spends, what, $4.9 Billion on R&D a year? They may well have a breakthrough screen tech in their pocket.

  2. Picture a new Apple pure glass monitor (4k and all) and picture a redesigned slotted, rectangular Apple TV box, (built in camera for motion control) that fits over either side of the screen.

  3. I hope so. I’d really like it to get back to 600 so I can sell. Much as I love Apple (some of my shares were purchased at $100 that’s how long I’ve had them) it’s stock is subject to so much fraud and price fixing that it’s not a dependable investment any longer.

    1. I think it’s just that big investors don’t believe Apple can continue to innovate and drive the industry. Apple’s business is creating great technology that meets customers needs, and that requires it to find crappy products that need the Apple makeover, and have the potential to generate billions in new revenue to grow. Outside of that, Apple is left to iterate the products it has, which will continue certainly to be profitable, but will not excite new investors who want new growth.

      They see Amazon and Google as growth engines because all they do is sell stuff/ads for things that already exist, and as their volumes increase their growth does too. Apple has to work hard to grow, and big investors don’t believe they can indefinitely pull the rabbit out of the hat for the next great thing.

      In the end, to excite investors, Apple will have to diversify to areas where they see indefinite growth potential, as with an Amazon or Google Ad sales model. Then, their next great thing will be the icing on the cake, vice the only reason for their existence.

      It remains to be seen whether Apple is interested in appeasing its investor class, or sticking to its strength. Perhaps we already know the answer, when Tim told the investor at the stock meeting that they weren’t that type of company. Apple’s reason for being is to create great products, not to become a money machine for short term focused investors.

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