Wedbush analyst Daniel Ives wrote in a note to clients on Friday that a successful debut of Apple’s new streaming-video service Apple TV+ could be worth $15 a share.
David Marino-Nachison for Barron’s:
Apple, he wrote, could “disrupt roughly 10% of Netflix’s target customer base within the next 12 to 18 months and along with…Disney create a much more competitive pricing environment and market share landscape.”
He sees 100 million Apple subscribers within four years as realistic and thinks that could lead to $7 billion to $10 billion in annual revenue.
“If Apple is successful with its latest streaming endeavor and reaches some of these potential subs/revenues numbers annually we estimate, this will add roughly $15 per share to our sum-of-the-parts valuation on Apple,” Ives wrote.
MacDailyNews Take: Apple TV+, at just $4.99 per month, doesn’t have to disrupt (take) any Netflix subscribers; it’s additive. Most people who already subscribe to Netflix will add Apple TV+, not drop Netflix for it.
Ives reiterated his Outperform rating on AAPL shares, and boosted his price target from $245 to $265.