“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.”
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