As a sign of confidence in Apple Inc. (NASDAQ:AAPL) shares, Stifel Nicolaus analyst Aaron Raker is raising his price target to $130 ($120), while reiterating a Buy rating ahead of earnings on Thursday, October 27th.
The analyst is also increasing his F4Q16 revenue and EPS estimates from $45.6 billion and $1.57 to $47.7 billion and $1.69, respectively, which now reflects iPhone shipments of 47.0 million, compared to prior 42.2 million estimate. The analyst adjusts his F1Q17 (Dec ’16) estimates from $70.5 billion and $3.01 to $74.3 billion and $3.17, respectively, with iPhone shipments now estimated at 76.6 million, compared to previously noted conservative estimate of 69.9 million.
Raker noted, “The anticipated upgrade rate of what we now estimate as nearing 700M active iPhone installed base remains a key focus – using an 8%-10% iPhone installed base upgrade rate would leave us at an implied 80%+ of our 76.6 million ship estimate, which compares to our estimate of ~50% contributions in the December 2014 and 2015 quarters. It is important to consider the extra (14th) week included in the December quarter – extra week ending on New Year’s Eve, which in the past has been highlighted as a good sell-thru week for Apple and cited as accounting for 1/14th of revenue during the last 14-week quarter (Dec ’11; F1Q12).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Aaron Rakers has a yearly average return of 10.2% and a 60% success rate. Rakers has a 9.3% average return when recommending AAPL, and is ranked #400 out of 4180 analysts.
Out of the 46 analysts polled by TipRanks, 38 rate Apple stock a Buy, 5 rate the stock a Hold and 3 recommend a Sell. With a return potential of 8%, the stock’s consensus target price stands at $127.76.
Netflix, Inc. (NASDAQ:NFLX) investors are overwhelmingly excited today after the company reported strong third-quarter results, beating expectations across the board, with subscriber growth ahead of guidance and expectations.
However, Wedbush bearish analyst Michael Pachter continues to believe that Netflix is overvalued, reiterating an Underperform rating, while raising the price target to $60 (from $50).
Pachter commented, “Netflix continues to spend exorbitantly for original and exclusive content, while international profitability remains elusive and competition for both content and subscribers is becoming more fierce. In addition, cash burn is unacceptably high, and we are skeptical that the company can successfully build a content library that will justify its high level of spending. In our view, Netflix’s current share price fails to address the potential for meaningful competition from Amazon, which recently launched a video-only subscription option of its own, and although we acknowledge that Netflix has the much more powerful brand for SVOD, we are confident that with its new standalone service, Amazon declared war on Netflix.”
According to TipRanks.com, analyst Michael Pachter has a yearly average loss of 0.5% and a 50.5% success rate. Pachter has a 42.3% average loss when recommending NFLX, and is ranked #3111 out of 4180 analysts.
Out of the 45 analysts polled by TipRanks, 23 rate Netflix stock a Buy, 13 rate the stock a Hold and 9 recommend Sell. With a downside potential of 7.5%, the stock’s consensus target price stands at $110.11.
Gilead Sciences, Inc.
In a research report issued today, Baird top analyst Brian Skorney reiterated an Outperform rating on shares of Gilead Sciences, Inc. (NASDAQ:GILD), while reducing the price target to $100 (from $122), which represents a potential upside of 36% from where the stock is currently trading.
Skorney explained, “As questions about the durability of Hep C sales plague GILD shares, we’ve taken a deeper look into the pace of U.S. Hep C prescriptions this quarter to adjust our model. Encouragingly, trends indicate that core new prescriptions (i.e., ex-Epclusa) may be stabilizing. We have modestly adjusted our 3Q16 revenue estimates for Gilead’s portfolio, and continue to think consensus is setting them up for another miss on Hep C.”
According to TipRanks.com, 5-star analyst Brian Skorney has a yearly average return of 20.9% and a 55% success rate. Skorney has a 6.2% average return when recommending GILD, and is ranked #81 out of 4180 analysts.
Out of the 24 analysts polled by TipRanks, 14 rate Gilead Sciences stock a Buy, while 10 rate the stock a Hold. With a return potential of 40%, the stock’s consensus target price stands at $103.28.