Apple Inc. (AAPL) Continues to Drive Innovation and New Growth, Amazon.com, Inc. (AMZN) Gets Price Target Boost


Analysts are weighing in today on two of the most talked-about stocks on Wall Street, Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN). While one analyst provides takeaways from Apple’s WWDC 2017 keynote, the other boosts his price target for Amazon to reflect increased estimates. Let’s take a closer look:

All Eyes on Apple’s WWDC 2017

Apple kicked off 2017 WWDC with an opening keynote in San Jose and Drexel Hamilton analyst Brian White attended the event. The analyst has left impressed by what Apple has to offer and believes yesterday’s software and hardware announcements further expand the depth and breadth of “Planet Apple”.

White noted, “There were some updates provided by Apple during the keynote that we believe speaks to the strength of the ecosystem. Nearly nine years old, there have been over 180 billion downloads from the App Store to date with $70 billion paid to developers (30% in the last year). Each week, over 500 million unique customers visit the App Store. Also, Apple Music now has 40 million songs, 2 million artists, tens of thousands of playlists and 27 million paid subscribers.”

That said, “In our view, the star of WWDC was HomePod that the company believes will “reinvent home music.” Apple described this new device as able to rock the house and provide spatial awareness, while acting as a musicologist and home assistant. Essentially, Apple sees an opportunity for a home device that can satisfy the demanding wireless music speaker crowd but also offer a smart, personal assistant with Siri […] The HomePod will be available this December (U.S., U.K. and Australia) and just in time for the holidays at a price of $349. Essentially, it looks as if Apple married together Apple-related technologies and the speaker expertise from the acquisition of Beats to create this new device.”

Overall, White reiterates a Buy rating on Apple shares, with a price target of $202, which represents a potential upside of 31% from where the stock is currently trading.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 10.8% and a 63% success rate. White has a 24.6% average return when recommending AAPL, and is ranked #162 out of 4575 analysts.

 

Maxim Sees 30% Upside for Amazon

After taking a closer look at Amazon prospects, Maxim analyst Tom Forte analyzed opportunities for Amazon to fuel its future growth and further disrupt the retail sector. Based on the analysis conducted for the report, the analyst raised his price target to $1,300 (from $1,075), while adjusting his operating forecasts as follows:

  • Increasing our 2017 and 2018 sales projections to $167,430M and $205,269M from $165,730M and $194,506M, respectively.
  • Raising our 2017 and 2018 adj. EBITDA forecasts to $20,253M and $26,254M from $19,817M and $24,594M, respectively.
  • Increasing our 2017 and 2018 GAAP EPS estimates to $8.93 and $14.50 from $8.36 and $12.31, respectively.

According to TipRanks.com, Forte has a yearly average return of -7.4% and a 35% success rate. Forte has a 26.5% average return when recommending AMZN, and is ranked #4333 out of 4575 analysts.

Out of the 31 analysts polled by TipRanks (in the past 3 months), 28 rate Amazon stock a Buy, while 3 rate the stock a Hold. With a return potential of 9.54%, the stock’s consensus target price stands at $1098.70.