Raymond James ups Apple target to $102 on iPhone upgrades

“Shares of Apple closed down $1.01, or 1%, at $91.28, as the Street today continued its process of re-assessing the company’s prospects following its seven-for-one stock split on Monday,” Tiernan Ray reports for Barron’s.

“Raymond James’s Tavis McCourt, who has an Outperform rating on the shares,” Ray reports, “raised his price target to $102 from $86, writing that the next iPhone, presumably the ‘iPhone 6,’ along with a rumored smart watch, should boost the company’s top line.”

Ray reports, “McCourt notes the Apple franchise has proven more sustainable than some predicted: ‘With Samsung trends eroding over the past several quarters and the [Google] Android marketplace seemingly undergoing meaningful commoditization, iPhone sales trends in the March quarter, and intra-quarter June data outlined in the note below should give investors confidence that Apple has built a business that is sustainably capable of realizing higher than typical margins, driven by application ecosystem advantages, vertical integration across software, services and hardware, and brand positioning. A well thought out mobile payments strategy may ‘seal the deal’ in terms of convincing investors of its long term ecosystem advantages in this market.”

Read more in the full article here.

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