Apple Inc. (NASDAQ:AAPL) hosted this week a Special Event in San Francisco with the unveiling of an enticing iPhone 7/7 Plus, a more purposeful Apple Watch (Series 2), cool innovation with AirPods, the planned launch of Apple Pay in Japan and a fresh tune from Sia to close out the event.
Canaccord top analyst Michael Walkley walked away believing that the iPhone 7 and Apple Watch Series 2 product launches were consistent with expectations with the phone featuring enough incremental features to satisfy consumers and sustain demand until the 10th anniversary iPhone is released in C2017.
Walkley reiterated a Buy rating on AAPL stock, with a price target of $120, which implies an upside of 16% from current levels.
Walkley wrote, “We believe the new iPhone products along with the now less expensive iPhone 6S combined with greater memory 32GB and 128GB options should enable Apple to continue to grow its high-end smartphone market share and improve replacement rate sales. We believe the iPhone installed base exceeded 500M exiting C2015 with overall connected Apple devices exceeding 1B users. We anticipate a stronger upgrade cycle in C2018 with the 10-year anniversary iPhone versus our expectations for the iPhone 7. We maintain our belief iPhone sales will return to growth in Q2/F2017 bolstered by the incremental features released in iPhone 7.”
“We are maintaining our estimates and price target following the launch event as Apple met our expectations with its new products and services announced,” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Michael Walkley has a yearly average return of 14.9% and a 61% success rate. Walkley has a 22.5% average return when recommending AAPL, and is ranked #29 out of 4147 analysts.
Out of the 48 analysts polled by TipRanks, 37 rate Apple stock a Buy, 8 rate the stock a Hold and 3 recommend a Sell. With a return potential of 20%, the stock’s consensus target price stands at $124.29.