UBS raises its Apple target from $215 to $250

UBS raised its price target on Apple shares to $250 from $215 citing the company’s ‘recurring hardware revenue stream’ from its iPhones,” CNBC reports.

“Analysts at the bank also said revenue for Apple’s services segment could grow 20 percent on a year-over-year basis for the next two years,” CNBC reports.

Apple’s fall product launch event is scheduled for tomorrow, September 12th.

Full article here.

MacDailyNews Take:

9 Comments

  1. Still Underpriced. What’s so hard about making Mac Pro’s? Takes them Five years to come out with a computer, DELL Does it every year. They Should have made a gaming machine, it would be easy for them to do. Apple is still Lame. I bet you $100,000 that Tomorrows annoucement will be Lackluster, AGAIN.

    1. Apple spent a lot of money on retooling for that trash-can Mac Pro and didn’t want to eat the cost entirely, so they milked it as long as they could. It was also produced in the U.S., so there were American employees jobs at stake. Apple admitted they made a mistake with the trash-can Mac Pro so now comes the end of that five-year mistake. There must have been a group of people who approved of that trash-can design, so maybe no one person can take the blame.

      Dell and every other computer company can introduce a new design every year but only Apple is overly concerned with profits and not high sales. Apple doesn’t build gaming machines so there’s no need for bleeding-edge changes every single year. I do think they should update components at least every three years, but that’s just me. I can easily live with four-year old Macs as long as they run as well as when I bought them new. Desktop Macs are clearly not Apple’s main focus so they’re going to suffer the most.

      I wouldn’t think designing a desktop or pro Mac is rocket science but Apple is always striving to be different, so it’s not going to be straightforward copy of some Windows PC. Apple should have stuck with the cheese-grater Mac Pro design but tried to do some radical design and missed by a country mile. Hopefully, they learned their lesson.

      Lackluster Apple events don’t bother me. I just want to see decent products being presented and nothing more than that. I miss Steve Jobs’ (feigned?) enthusiasm the most. Personally speaking, Apple events just aren’t the same without him.

  2. As long as the majority Wall Street believes Apple is priced properly, then Apple certainly isn’t under-priced. The problem is with Apple. Tim Cook is unable to get across to big investors that the company is worth more then they currently think it is. If Apple had acquired a cloud business, creates a new product category or a profitable streaming service, then maybe big investors will sit up and take notice. Look at Microsoft’s P/E of 50 despite being fundamentally weaker than Apple is. Why? Azure Cloud. Same with Amazon. Why? AWS.

    Apple had the chance to grab a cloud business but didn’t. There is still major growth in the cloud business, so Apple should still get a cloud business and profit from it. Knowing Apple, they won’t and Apple will continue to be, as you say, under-priced or undervalued. Only Apple can be blamed for that.

  3. The problem is not with Apple. Do any of you actually own the stock of the world’s largest Market Value Business? Aside from that they earn more than anyone else per unit sales and have a booming retail business that was booming one day before the announcement of completely new phones and watches. Tim Cook is responsible for apples ascent. If you have and hold any significant amount of AAPL over the last several years, you are rich. This is not stupid conjecture. It is a fact. I put everything I had in retirement in AAPL 12-15 years ago. It made me a fortune. Could it make more? You bet it will!!! Stop bashing the greatest cash cow that has ever existed and either put up or shut up!

    1. is in the stock only. I own a fair portion of stock and most shares were purchased pre split and some below $6/share, but I continue to follow Apple because of my interest in design and the culture/ethos Steve created, that was much, much greater than merely being a “cash cow.”

      For those that see Apple as more than a “cash cow,” they may be more likely to perceive an ethos change that’s disheartening and frustrating. Believe me when I say, it’s absolutely possible to be excited by the rising stock value, while voicing frustration with perceived negatives and still being a very strong Apple advocate. There’s nothing contradictory about this mindset. In addition, being a “cash cow” is a result of the foundation built…not the other way around.

    2. @Michael: Congratulations on your great financial achievements. I was not an early birds like you guys. I started tip-toes with AAPL more than 6 years ago when analysts bashing Apple for being rotten in 2013, stock dropped down to $280 pre-split. Since then I made quite significant gains as well. Good luck to all. Long AAPL.

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