As data points from many regions (US, UK, Japan) indicate a very healthy iPhone 7 launch, Nomura analyst Jeff Kvaal is out with a favorable report on Apple Inc. (NASDAQ:AAPL), raising the price target to $135 (from $120), while reiterating a Buy rating on the stock. Apple shares are currently trading at $114.70, up $1.15 or 1.01%.
Kvaal noted, “The steady positive news across geographies on the iPhone 7 launch implies demand is stronger than thought. We believe the supply chain is preparing for upward revisions to production forecasts.”
The analyst continued, “We lift our FY17 iPhone units above iPhone 6 levels. We now anticipate 78mn iPhones in F1Q, solidly above consensus of 75mn. We lift our FY17 estimate from 230mn to 234mn (consensus 221mn). This assumes Apple expands its iOS base at a pace consistent with FY16 and the replacement rate is slightly higher than in the 6s cycle, though well below the 6 cycle.” Furthermore, “We lift our FY17 EPS estimate from $9.10 to $9.32 primarily on higher iPhone volumes. The impending iPhone 8 cycle provides some confidence in FY18 volumes and recurring Services revenue should rise as a percent of sales.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jeff Kvaal has a yearly average return of 11.6% and a 63% success rate. Kvaal has a 10.5% average return when recommending AAPL, and is ranked #291 out of 4175 analysts.
Out of the 47 analysts polled by TipRanks, 38 rate Apple stock a Buy, 6 rate the stock a Hold and 3 recommend a Sell. With a return potential of 9.5%, the stock’s consensus target price stands at $125.77.
BMO Capital analyst Daniel Salmon was out pounding the table on Amazon.com, Inc. (NASDAQ:AMZN) Tuesday, reiterating an Outperform rating, while raising the price target to $900 (from $875), which represents a potential upside of 12% from where the stock is currently trading.
Salmon commented, “We believe consensus revenue estimates for Amazon’s North America and International segments look appropriate for 3Q, but we are raising our already above consensus estimates for 4Q due to increased confidence in Prime growth. We believe there were 26 million more Prime members heading into 2H16 compared to 2H15, very significant due to the fact that Prime members tend to spend more than non-Prime members. We arrive at our estimates based on a detailed analysis of Amazon’s unearned revenue balance contained within the note.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance.
According to TipRanks.com, analyst Daniel Salmon has a yearly average return of 5.3% and a 63% success rate. Salmon has a 22.8% average return when recommending AMZN, and is ranked #705 out of 4175 analysts.
TipRanks analytics exhibits AMZN as a Strong Buy with 40 analysts issuing a Buy rating for the stock, while 4 maintaining a Hold rating. The consensus target price for AAPL is $872.51, marking a 9% upside from current prices.