Apple shares rise after Stifel, BMO raise iPhone sales estimates

“Shares of Apple (AAPL) are up $1.84, or almost 2%, at $99.71, bouncing back from yesterday’s nearly 4% decline, as the company responded to claims of bending in the new iPhone 6 Plus,” Tiernan Ray reports for Baron’s.

“Stifel Nicolaus’s Aaron Rakers, who has a Buy rating on the shares, and a $110 price target, raised his estimate for the September quarter for iPhone unit sales to 39.6 million from 37.8 million, and raised his average selling price for the devices to $575 from $560. He also raised his fiscal Q1 estimate for December to 65.3 million from 58.6 million, with an average selling price of $680 from $630,” Ray reports. “BMO Capital Markets‘s Keith Bachman reiterates an Outperform rating, while raising his price target to $110 from $106, after raising his fiscal 2015 iPhone unit estimate to 189 million units from 178.4 million.”

Read more in the full article here.

6 Comments

  1. 189 million iPhones projected and a $110 price target seems laughable. That would likely squeeze the P/E down to around the high 14s or low 15s. It doesn’t seem quite balanced when Microsoft can hold its P/E well above 17. I’m not complaining, but merely pointing out valuation discrepancies I don’t quite understand. Apple Pay will likely solidify Apple’s future along with the IBM collaboration, so I don’t see what’s exactly weighing Apple’s share price down. The fundamentals are definitely there. I guess I’ll simply have to find solace with increased dividends.

  2. The market got what they wanted. Big drop on contrived FUD and a huge pump on raised estimates.
    Someone just made a ton of money selling before the drop. I bet the bought right back in yesterday.

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