“Citigroup’s Jim Suva and Asiya Merchant boosted their price target on Apple (AAPL) from $120 to $135 Monday, as part of a larger upward estimate revision,” Tiernan Ray reports for Barron’s.
“They write that the increase comes from ‘material changes’ that the consensus is not yet taking into account. While it’s not revolutionary to say that most see stronger-than-expected iPhone 6 and 6+ sales, they write that their edge is ‘that purchasing trends are mix adjusted to a much stronger mix of iPhone 6/6+ memory (64/128GB selling strongest, with stock outs & longest lead times),'” Ray reports. “They believe this will drive sales, of course, but also strong margins and earnings per share well beyond one quarter, especially given Device Acceleration — their term for the trend among U.S. carriers to allow customers to upgrade before the end of the standard two-year contract.”
Read more in the full article here.
Ray reports, “As it turns out, Citigroup is not alone as it upped its estimates for Apple (AAPL). BMO Capital Markets’ Keith Bachman also increased his target price, boosting it $10 to $123, as he increased earnings estimates for 2015 and 2016.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]