“Canaccord raised its price target for Apple to $112 from $102 Friday, maintaining a ‘buy’ rating for the stock,” Shawn Ingram reports for TheStreet. “The analyst also raised its EPS estimates for the iPhone maker. Apple should see accelerating smartphone replacement sales with the next version of the iPhone according to Canaccord analysts T. Michael Walkley and Siddharth Sinha.”
“‘Based on our analysis of global iPhone sales by region, we believe consumers slowed the pace of iPhone upgrade purchases during the iPhone 5 and 5s product cycles,’ the analysts wrote,” Ingram reports. “‘We believe the extended replacement rates combined with new larger-screen iPhones position Apple with its large installed base for record iPhone 6 sales. Further, we believe Apple will charge a premium for these larger-screen iPhones resulting in stable gross margin trends for overall Apple but with a higher gross margin dollar contribution due to an increasing revenue mix from higher ASP iPhones.'””
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