U.S. stocks slipped Friday amid further declines in oil prices and worries about global growth. Among the equities in focus today are tech giant Apple Inc. (NASDAQ:AAPL), e-commerce leader Alibaba Group Holding Ltd (NYSE:BABA) and electric car maker Tesla Motors Inc (NASDAQ:TSLA). Here’s a rundown of what analysts had to say about AAPL, BABA and TSLA.
It’s that time of year again, Apple’s World Wide Developer Conference (WWDC) is about to kick-off in the Moscone Center in San Francisco. Ahead of the conference on Monday, Drexel Hamilton analyst Brian White reiterates a Buy rating on the stock, with a price target of $185, which represents a potential upside of 86% from where the stock is currently trading.
White noted, “On Monday, we expect Apple to take its digital matrix to the next level with software updates, including iOS 10, OS X 10.12 (or macOS), watch OS 3 and tvOS 10, combined with potential framework updates around HomeKit, HealthKit, CarPlay and more.”
Furthermore, “In our view, a clear focus of WWDC will be around expanding the breadth and depth of Siri that remains just a shadow of what it could be if thirdparty apps were able to develop around this innovation. Moreover, the Mac portfolio seems ripe for Siri and the early success of the Amazon Echo should accelerate Apple’s creative juices around how Siri can be leveraged in the future. For example, we have voiced our opinion that Apple should introduce a personal robot with Siri and the unveiling of the ASUS “Zenbo” at Computex last week further supports our longer-term view.”
Is it worth listening to Brian White? According to TipRanks.com, the answer is yes. White has has a 19% average return when recommending AAPL, and is ranked #124 out of 3990 analysts.
Out of the 52 analysts polled by TipRanks, 40 rate Apple stock a Buy, 10 rate the stock a Hold and 2 recommend a Sell. With a return potential of 28%, the stock’s consensus target price stands at $127.88.
Alibaba Group Holding Ltd
Cantor analyst Youssef Squali reiterated a Buy rating on Alibaba, with a price target of $95, as the company is scheduled to host its analyst day on June 14 in Hangzhou. Shares of Alibaba are currently trading at $76.71, down $0.84 or -1.08%.
Squali wrote, “Alibaba’s top management is likely to make its inaugural analyst day a forum for a deep dive into the operations of the various businesses and address some of the key issues hanging over the stock. At the event, set for Tuesday (6/14), we expect to see a deep management bench, led by Daniel Zhang (CEO), Joe Tsai (EVC) and Maggie Wu (CFO), addressing questions including concerns around the health of the Chinese consumer, traction with O2O, monetization of Ant Financial, relationship with affiliates including Cainiao, and counterfeiting. It remains to be seen whether management will provide financial guidance for FY:17 and/or long-term targets.”
According to TipRanks.com, analyst Youssef Squali has a yearly average return of 13.9% and a 66% success rate. Squali has a -4.2% average return when recommending BABA, and is ranked #10 out of 3990 analysts.
Tesla Motors Inc
In a research report released Friday, Piper Jaffray analyst Alexander Potter initiated coverage on shares of Tesla, with a Neutral rating and price target of $223, which represents a slight downside potential from current levels.
Potter wrote, “While we cannot recommend buying the stock (not now, at least) we can wholeheartedly recommend buying the product. In fact, after a test-drive last week, it was difficult to resist placing an order on the spot (we waited a few days before placing an order, because it took a full weekend to convince ourselves that spending so much money on a car is somehow justifiable). But just because Tesla is probably the coolest company in the world doesn’t mean the stock is cheap. Tesla’s production targets are aggressive and delays seem likely. Before buying TSLA, we’d wait for these potentially negative catalysts to play out.”
According to TipRanks.com, analyst Alexander Potter has a yearly average return of -12.3% and a 34% success rate. Potter has a average return when recommending TSLA, and is ranked #3725 out of 3990 analysts.
Out of the 22 analysts polled by TipRanks (in the past 3 months), 12 are bullish on Tesla stock, 4 remain sidelined, and 6 are bearish. With a return potential of 22.5%, the stock’s consensus target price stands at $276.09.