Analysts are weighing in on the technology giant Apple Inc. (NASDAQ:AAPL) and aerospace giant Boeing Co (NYSE:BA). Here’s a quick roundup of today’s bullish brokerage notes on AAPL and BA.
Credit Suisse analyst Kulbinder Garcha and his Asia Technology team published a report showing that iPhone supply chain orders in Asia continue to face stagnation. The report shows that Apple has recently lowered its orders from suppliers, and that the company plans to build 70 million to 75 million iPhones in December and 45 million to 50 million iPhones in March, lower than what Wall Street has been expecting.
However, Garcha reiterated an Outperform rating on Apple shares, with a price target of $140,which implies an upside of 19% from current levels.
Garcha commented, “The CS Asia Technology Team has confirmed in their most recent November survey that the iPhone supply chain orders will be weaker than originally forecast. In our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters. We continue to believe that with high retention rates, continued installed base growth, and the optionality of a smaller 4-inch iPhone.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Kulbinder Garcha has a total average return of 7.6% and a 55% success rate. Garcha has a 20% average return when recommending AAPL, and is ranked #438 out of 3644 analysts.
Out of the 50 analysts polled by TipRanks, 37 rate Apple stock a Buy, 11 rate the stock a Hold and 2 recommend a Sell. With a return potential of 27%, the stock’s consensus target price stands at $148.86.
In a research report issued today, Deutsche Bank analyst Myles Walton maintained a Buy rating on shares of Boeing, with a price target of $175, which represents a potential upside of 18.5% from where the stock is currently trading.
Walton wrote, “We expect Boeing’s board to announce the outcome of their annual capital deployment meeting on December 14, 2015. The release dates for the last two years were after the close of markets on December 15, 2014 and December 16, 2013. We expect the company to announce both a material dividend increase (15%) and an increase to their outstanding share repurchase authorization (increase authorization to $12B),”
The analyst continued, “We are modeling a (Street-high) 15% increase in BA’s annual dividend following the 25% increase in December 2014 and the 50% increase in December 2013, which would imply a 2016 div yield of 2.7%. We continue to see the dividend as one of the best signals for investors to get confidence in sustainable cash flow growth (implied payout ratio on DBe 2016 EPS would be 44%).”
According to TipRanks.com, analyst Myles Walton has a total average return of 8.9% and a 73.5% success rate. Walton has an 18% average return when recommending BA, and is ranked #175 out of 3644 analysts.
Out of the 18 analysts polled by TipRanks in the last 3 months, 13 rate Boeing stock a Buy, 4 rate the stock a Hold and 1 recommends a Sell. With a return potential of 11%, the stock’s consensus target price stands at $164.36.