“In a report published Monday, analysts at Brean Capital initiated coverage of Apple Inc. with a Buy rating and a price target of $160,” Jim Swanson writes for Benzinga.
“Brean Capital is optimistic about Apple’s ability to deliver significant EPS upside of 15-20 percent, driven by higher than anticipated iPhone shipments through 2017, favorable gross margins from the iPhones and iPhone mix, as well as opex leverage at least throught 2016, as the recent iWatch and iPhone 6 investment cycles bear fruit,” Swanson writes. “According to the analysts, there is gross margin upside through 2017 as well. ‘This is predicated on two reasons: 1) we believe that iPhones carry 45% GM vs. AAPL corporate GM of 40% and 2) we believe that Street is under-estimating the % of iPhone ships that are the 60% GM iPhone 6 Plus (which we believe could be up to 1/3 of iPhone unit ships; we believe Street could be closer to 25%+ mix wise),’ Brean Capital explained.”
Read more in the full article here.
MacDailyNews Take: This is all well and good, but Wall Street still doesn’t get it. If you think Apple is big now, you’re in for quite a shock.