U.S. stocks moved higher on Monday, led by energy shares that climbed with the price of oil. Among the equities in focus are iPhone maker Apple Inc. (NASDAQ:AAPL), online retail giant Amazon.com, Inc. (NASDAQ:AMZN), and micro-blogging Twitter Inc (NYSE:TWTR). Here’s a quick roundup of today’s bullish brokerage notes on AAPL, AMZN, and TWTR.
Berkshire Hathaway Fund filed a Form 13F and disclosed a 9.81 million share position in Apple worth a whopping $1.069 billion at the end of 1Q:16, sending shares up 3.5 percent to $93.74.
Drexel Hamilton analyst, Brian White, like Berkshire Hathaway Fund, believes Apple is a “wonderful company at a fair price.” White points out that the stock is “meaningfully undervalued for such an excellent company with attractive long-term growth prospects.” In light of this, the analyst reiterated a Buy rating on the stock with a $185.00 price target.
White believes Apple lacks sufficient credit from the market for its digital matrix across software, services, and hardware, which the analyst describes as delivering a “seamless experience for an installed base of 1 billion active devises.”
Additionally, the analyst explains that Apple is an extremely prominent brand in today’s world. The company currently holds $232.9 billion in cash (2Q:FY16) and has mass amounts of generated free cash flow, specifically, $70 billion for fiscal year of 2015.
White elaborates on his optimistic view towards Apple’s success, noting, “In the end, we believe Apple’s powerful ecosystem, iconic brand and deep financial resources provide the foundation for Apple to capitalize on new, large and exciting opportunities across the IOT landscape as they arise in the future.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 6.2% and a 48% success rate. White has an 18% average return when recommending AAPL, and is ranked #261 out of 3910 analysts.
Out of the 51 analysts polled by TipRanks, 40 rate Apple a Buy, 9 rate the stock a Hold and 2 recommend a Sell. With a return potential of 39.5%, the stock’s consensus target price stands at $130.81.
Reports from the Wall Street Journal indicate that Amazon will launch new private-label brands in the coming weeks that will include the company’s first move into perishable food. This follows Amazon’s recent private label apparel launch.
KeyBanc analyst Edward Yruma estimates that private label accounts for roughly 20% of food retailing. Importantly, private-label food brands have moved beyond simply low price; Costco’s Kirkland, Trader Joe’s and Whole Foods’ 365 are considered to be key traffic drivers for their retailers. The analyst believes that the supply-chain infrastructure for private-label food and apparel is highly robust, and a launch can be scaled very quickly.
Moreover, Yruma believes that Amazon’s data can be a key competitive advantage. He noted, “We note that AMZN seems to have leveraged customer reviews in its private label apparel launch and believe AMZN can similarly utilize reviews along with customer surveys to inform product development of private label food or household product offerings. Consistent with our recent convergence report (“The Custom Consumer”), we believe that utilization of consumer data in product development is a key differentiator in the consumer industry.”
Yruma reiterated an Overweight rating on shares of Amazon, with a price target of $800, which implies an upside of 13% from current levels.
According to TipRanks.com, analyst Edward Yruma has a yearly average return of 0.6% and a 45% success rate. Yruma has a 18% average return when recommending AMZN, and is ranked #1790 out of 3910 analysts.
Out of the 45 analysts polled by TipRanks, 40 are bullish on Amazon stock, while 5 remain on the sidelines. With a return potential of 10%, the stock’s consensus target price stands at $778.66.
In a research report released Monday, MKM analyst Rob Sanderson reiterated a Neutral rating on shares of Twitter, while reducing the price target to $14.00 per share (from $18.00), which represents a slight downside potential from current levels.
Emphasizing increased conviction in his Neutral rating, Sanderson noted, “While we still see mass market potential in the Twitter service, significant execution risk looms large. Inability to improve the user experience enough to drive a user growth rebound, loss of influencers in key categories and risk of network collapse remain our largest concerns. TWTR trades at a discount to growth, but we think skepticism is justified as revenue growth has slowed significantly and estimates continue to be revised lower.”
According to TipRanks.com, analyst Rob Sanderson has a yearly average return of -5% and a 45% success rate. Sanderson has a -8% average return when recommending TWTR, and is ranked #3421 out of 3910 analysts.
Out of the 30 analysts polled by TipRanks (in the past 3 months), 11 rate Twitter stock a Buy, 16 rate the stock a Hold and 3 recommend a Sell. With a return potential of 41%, the stock’s consensus target price stands at $19.90.