Analysts came out today with positive recommendations on the technology giant Apple Inc. (NASDAQ:AAPL) and online retail giant Amazon.com, Inc. (NASDAQ:AMZN). The analysts reflect on Apple’s P2P payments and Amazon’s ChannelAdvisor data.
Piper Jaffray analyst Gene Munster reiterated an Overweight rating on shares of Apple, with a price target of $179, following a WSJ report that Apple could launch a peer to peer (P2P) payment offering powered by Apple Pay sometime in 2016.
Munster observed, “The purpose of Apple Pay is to improve the mobile iOS experience. We don’t necessarily view Apple as a payments company, but it is building an interface layer on top of the existing payments industry. Thus players that are not included in that top layer can be hurt. As we’ve previously written, given the size of Apple’s revenue base, it is unlikely that the payments layer would meaningfully impact the model. P2P is potentially even less financially lucrative given consumers are unwilling to pay for P2P payments. However, adding a P2P feature would give Apple another feature in Apple Pay, enabling the easy transfer of money between friends that could help the stickiness of iPhone.”
“These features would complement Apple Pay’s existing in-store and in-app payment features. There is limited to no impact on the model to Apple offering a P2P solution, but it could impact the broader payments space including existing P2P players like Venmo (owned by PYPL),” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gene Munster has a total average return of 24.9% and a 70.1% success rate. Munster has a 25.8% average return when recommending AAPL, and is ranked #1 out of 3840 analysts.
Out of the 49 analysts polled by TipRanks, 37 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 $149.10.
Nomura Holdings analyst Robert Drbul reiterated a Buy rating on shares of Amazon, with a price target of $700, after the e-commerce software company ChannelAdvisor released its October 2015 SSS data for Amazon and a number of other major e-commerce players.
Drbul noted, “October continued the trends we saw in 3Q, with AMZN exceeding comScore’s estimated ~15% e-comm growth rate. Amazon comp sales increased 16.4% in October, a deceleration from 19.2% in September. Excluding one-time issues at three of AMZN’s large customers (i.e., temporary suspensions, tough ‘daily deal’ comps, etc.), we note that October results would have been in line with September. On a two-year basis, Amazon comp sales decelerated to 49% (from 57% in Sept). In addition, ChannelAdvisor reported that 34.9% of Amazon’s October GMV was FBA, up from 29.7% last year.”
The analyst concluded, “We reiterate our view that Amazon will be a dominant force this holiday season, as the company continues to put pressure on traditional retail through competitive pricing and shipping. Additionally, we highlight that we expect Amazon’s increased focus on and expanded offerings in Fashion to continue to cut into department store traffic and sales.”
According to TipRanks.com, analyst Robert Drbul has a total average return of 14.9% and a 69% success rate. Drbul has a 59.6% average return when recommending AMZN, and is ranked #204 out of 3840 analysts.