Bank of America Securities analyst Wamsi Mohan has raised his Apple price target to $470 from $420, but downgraded Apple’s stock from “buy” to “neutral,” citing a new balance to risk and reward as the stock has hit new highs following Apple’s Street-destroying earnings report.
Mike Wuerthele for AppleInsider:
In a note to investors seen by AppleInsider, Mohan is now no longer underwater at $470 per share, but has reclassified the stock as neutral versus buy, since he sees the stock as more balanced than it has been previously.
Mohan’s new $470 Apple stock price target assumes single-digit year over year revenue grown, and flat margins from hardware for the fall, including the “iPhone 12.” Like other analysts, Mohan believes that there will be “high-teens” year over year growth in services, and an increase in services margins.
To support a $17 earnings per share, Mohan believes that $6 of that will come from Services with a 40x earnings per share multiple, with the remaining $11 being delivered from hardware at a 20x earnings per share.
MacDailyNews Take: For Apple’s just reported fiscal Q320, Bank of America’s Mohan predicted $51.7 billion in revenue, with $1.89 EPS vs. Apple’s actual $59.7 billion in revenue and $2.58 EPS. Not even close, Wamsi.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
The market has not priced things correctly. Let me get this straight, idiots from BoA price Apple wrong, repeatedly, then have to lift the price substantially over market, but downgrade the stock? They are almost as bad as Goldman Sucks’a** , which continues it’s amazing record of being 100% wrong about apple. Managing to beat broken clocks with its amazing record of incompetence.
This stock is going well over $700. Why? The market has not figured this out:
5G is bs. The market is setting stupid expectations for 5G. Most consumers dont care at all, their LTE speeds are crazy fast good enough for them. 5G is a red herring. It will cause a little bump, but for most consumers wont move the dial to cause a super cycle of iPhone buying.
The key are apple glasses. If Apple releases them in 2021, for the first 6 months all the ‘experts’ will crap on them say how lame they are. Like Apple Watch. Like AirPods. But, assuming Apple does a good job and people like them we have 2 possibilities: 1) Good, 2) Next wave.
1) Good scenario. If the uptake is just like AirPods or Apple Watch that is the Solid sales, adding solidly to the wearables. Probably doubling wearables revenue.
Scenario 2) Is a next wave phenomena. If Apple Glasses are like the original Mac and the original iPhone, starting a computing revolution, ushering a new gen of tech from which there is no going back, the new ‘must have’ the sales will be crushingly good. It will ramp and ramp and ramp and follow the iPhone trajectory of years.
But regardless of it’s scenario1 or 2, here is the Key kicker. For at least 5-7 years glasses will require an iPhone to work, much like Apple Watch/AirPods. That means a SUPER CYCLE of iPhone sales as it’s likely that apple will require the latest phones to use apple glasses.
That means $700 for apple will be cheap by 2022.
I was under the impression 5G’s speed is important for AR. If “yes,” Apple Glasses functionality will be maximized w 5G…therefore “5G is bs,” is bs.
I’ll add, users have yet no idea how strongly 5G will figure into their computing/communications. In time, we’ll not be able to imagine using anything but.
Maybe you miss your dial-up connection?
5G isn’t necessary at all for AR. What a load. Yea those multi gigabyte transfers for the arrow to turn left for your next turn.
That multi-terabyte download of the linkedin contact of someone your meeting.
🙄
More speed is always better. But people seem to be fine holding onto their 5 year old phones and 7 year old computers because they’re not feeling any motivation to upgrade.
I think AR will be a bit more than signals for your next turn. The “reality” part of the technology might take a bit more power.
Yea, processing power. Not more gigabytes of downloads.
Hmmm….
““Computer games, AR, and VR are more demanding in terms of bandwidth and latency, compared to the streaming services that we know today.” said Krasimir Nikolov, CEO and cofounder at QuarkVR, an ultra-fast software solution that provides low-latency compression and wireless transmission of VR content. “The current mobile networks cannot meet the streaming requirements for such an immersive, and uninterrupted experience. 5G, in contrast, has the capability to stream even very demanding and competitive traditional triple-A games, or AR/VR experiences in real time.”
“reality” is a critical word that allows a main feature of AR; “immersive” experience.
Right, because AR GAMES is totally driving lte vs 5g Phone sales. Yea grandma mom and dad are really concerned. 🙄 Keep smoking and enjoy.
You’re thinking like an old person. Btw, immersive hardly means just gaming.
Ah, and there we are. Ad hominem, the last vestige of a failed argument. Btw the first words of your quote were “computer games”. Keep the failures coming. You’re great at it.