Analysts are weighing in on the technology giant Apple Inc. (NASDAQ:AAPL) and social networking giant Facebook Inc (NASDAQ:FB), and they are unsurprisingly bullish on both stocks.
In a research report issued today, RBC Capital analyst Amit Daryanani reiterated an Outperform rating on shares of Apple, with a price target of $150, which represents a potential upside of 26% from where the stock is currently trading.
Daryanani noted, “Apple recently released its new iPad Pro product and we believe total units shipped will come in at ~3M over the first three months (anticipate ~4.5M units through Mar-qtr). At the low-end this would imply a $2.4B revenue opportunity over the next three months (and for Mar-qtr), which implies ~$600M in operating profit or ~$0.08–0.10 in incremental EPS. From a Mar-qtr perspective, this would result in +4% to the top-line and +3% to EPS to start the new calendar year. Net Net: as the company ramps production of the iPad pro (including 5–7 weeks of channel inventory build), we see a near-term $2.4B revenue opportunity.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Daryanani has a total average return of 2.6% and a 55.2% success rate. Daryanani has a 15.6% average return when recommending AAPL, and is ranked #963 out of 3636 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 25%, the stock’s consensus target price stands at $148.86.
MKM Partners analyst Rob Sanderson reiterated a Buy rating on Facebook, while raising the price target to $130 (from as $120), as the company “continues to be a consensus long and deserves to be”, according to the analyst.
Sanderson stated, “While the cycle of positive estimate revisions has slowed, the company continues to deliver strong results. We do not view FB’s growth adjusted multiple as aggressive at 35x next year’s non-GAAP EPS while still growing revenue by over 50% on a constant currency basis. We think 2016 expense guidance is likely to be above consensus, but not by as much as 2015 which now appears likely to come in 17% below the midpoint of the initial range.”
According to TipRanks.com, analyst Rob Sanderson has a total average return of -2.4% and a 50% success rate. Sanderson has a 27% average return when recommending FB, and is ranked #2983 out of 3636 analysts.
Most of the analysts covering Facebook remain bullish on the company’s stock. A total of 46 analysts currently provide ratings; 41 of them suggest a Buy, while 4 recommend a Hold and one recommends a Sell. The 12-month consensus mean price target for the stock is $120.21, reflecting a 14% upside over today’s closing price.