Analysts are weighing in on US consumer electronics giant Apple Inc. (NASDAQ:AAPL) and action camera giant GoPro Inc (NASDAQ:GPRO). Here’s a quick roundup of today’s brokerage notes on AAPL and GPRO.
Cowen analyst Timothy Arcuri reiterated a Market Perform rating on shares of Apple, while lowering the price target to $125 (from $130), after Apple chip supplier Qorvo pre-announced a big (15%) cut to its december quarter guidance citing weaker-than-expected “demand in the Company’s Mobile Products segment.”
Arcuri noted, “Based on ~$4 of content for QRVO and ~$2.25 for CRUS, we estimate this implies a miss of ~15MM or maybe 20MM units depending on the assumptions. This just about matches separate field checks indicating 6S/6S+ builds were ~65-68MM for CQ4 and ~34-35MM for CQ1:16 as of early Nov but have now fallen to ~60MM and ~25MM respectively. To some degree, we do believe AAPL was slightly over-procuring components to avoid the shortages of the 6/6+ but we have always been worried about the new reliance on China for 6S/6S+ and were the first to downgrade the stock in July.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Timothy Arcuri has a yearly average return of 6.5% and a 47.9% success rate. Arcuri has a 28.5% average return when recommending AAPL, and is ranked #498 out of 3630 analysts.
Most of the analysts covering Apple remain bullish on the company’s stock. A total of 51 analysts currently provide ratings; 37 of them suggest a Buy, 12 recommend a Hold rating and 2 recommend a Sell. The 12-month consensus mean price target for the stock is $143.95, reflecting a 48% upside over yesterday’s closing price.
Morgan Stanley analyst James Faucette reiterated an Underweight rating on shares of GoPro, with a $12 price target, following meetings with Director of IR, Peter Salkowski at the 48th annual Consumer Electronics Show in Las Vegas this week.
Faucette stated, “Salkowski echoed our own channel findings that holiday sales of lower-priced drones did not fare as well as retailers had hoped, but he expressed optimism that GoPro’s brand would help demand, whatever its pricing might be. The company is not publicly showing its quadcopter product at CES, and we continue to expect its launch in late 1H16.”
“Salkowski also acknowledged that the company must do substantially more on the software side to improve usability, consistent with our views from the outset (see our initiation on December 17, 2014). While the company is working on both mobile and desktop-based software solutions, we expect those packages and associated improvements to be slow to roll out in 2016, and expect any usability improvements to be modest, even as the company refreshes its HERO camera line in 2H16,” the analyst added.
According to TipRanks.com, analyst James Faucette has a yearly average return of 10.1% and a 73.2% success rate. Faucette has a -6.3% average return when recommending GPRO, and is ranked #326 out of 3630 analysts.
Out of the 19 analysts polled by TipRanks, 9 rate GoPro stock a Buy, 8 rate the stock a Hold and 2 recommend a Sell. With a return potential of 133%, the stock’s consensus target price stands at $37.71.