Cantor Fitzgerald reiterates: Buy Apple; $195 price target

“Shares of Apple Inc. rose on Monday after an analyst at Cantor Fitzgerald reiterated his buy rating on the stock,” Sue Chang reports for MarketWatch.

Analyst Brian White “projected further growth in China for Apple with 15% to 20% of Chinese subscribers likely to be candidates for high-end phones in the next five years,” Chang reports.

Chang reports, “The analyst also said Apple is in the midst of a ‘transformational super cycle’ but its prospects are as bright as ever.”

MacDailyNews Take: That’s “transformational, super cycle.” White’s actual quote is:

[Apple] is still in the midst of a transformational, super cycle with the first new product category in five years with Apple Watch, a multi-year iPhone cycle given the larger form factor, momentum in China, potential new areas of innovation (e.g., streaming TV, growing interest in the car) and a rapidly expanding digital matrix (e.g., Apple Music, Apple Pay, CarPlay, etc.). As such, we believe Apple’s future prospects have never been brighter and the stock is trading at just 9.8x our CY:16 EPS projection (ex-cash).

Chang reports, “White’s 12-month price target for Apple is $195.”

Full article here.

17 Comments

  1. Oh, that Brian White just likes to get attention. Apple is sitting at $125 and he’s calling for $195. It’s just ridiculous. Netflix will be at $800 and Amazon will be at $500 before Apple gets to $140. Apple’s P/E is compressing while everyone else’s P/E is expanding. Apple is making money hand over fist and the share price has been going nowhere but down. Doesn’t the share price usually rise in concert with the EPS and not go in the opposite direction? Things are happening with Apple’s value that make no sense at all.

    1. Everything you say rings of truth BUT the thing is that the public still have the old story of Microsoft eating Apple’s lunch in the past and now they think that Google will do the same with Android. Apple has to get its story out better and show the masses that it has beaten Microsoft and is beating Android where it counts. Unfortunately, the vast majority of the public is only seeing market share numbers in unit sales and mostly want cheap Android junk that is ‘good enough’.

    2. while his PLUM analysis is less conventional than the typical EGG analyses and BACN trajectories performed by the usual suspects, since he is correcting +- for BUN, i’m inclined to at least listen to him.

      1. the Apple PLUM EGG BACON BUN

        yum.

        (I voted you up because as usual I don’t understand what you are talking about but it’s amusing !). Previously you had the PLUM JAM (analysis) BUN…

    3. The only thing ridiculus about Cantor’s analysis and forecast of Apple/AAPL is the idiots that can’t read income statements/10Qs and forecast from multi-year (10+) data.

      White’s analysis is spot on, no matter what the ‘short-sided armchair quarterbacks’ think, and only assumes a PE of 18.10 against consensus Earnings )post January Earnings Report) of $10.75. In the last 3 quarters AAPL’s PE has exceeded 18.00 twice. The one time it did not was caused by the Greek default overhang, which reared its ugly head once again during the March quarter, and now seems to have been resolved yesterday (AAPL up today US$2.38 1.9% as a result).

      I swear, I sometimes think posters should be tested for financial analysis acumen before being allowed to post.

      Understanding how Wall Street reacts to perceived instability in a Company, and financial markets around the world, takes a ton of the “makes no sense at all” mystery out of understanding how equities move and why.

      BTW, Wall Street’s consensus AAPL price target for January is more than $180, with 2 Earnings Reports (with subsequent price target upgrades following) between now and then.

  2. Hey “big media,” where’s the sensationalist story about AAPL making $32.2B “appear” (in just the last two trading days) for Apple’s investors?

  3. AAPL will probably never get to $400. Since it is on the Dow, and since the Dow is weighted by share price, AAPL would probably have to split to keep from being overweighted on the Dow.

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