Analysts are weighing in on technology giant Apple Inc. (NASDAQ:AAPL) and E-commerce giant Amazon.com, Inc. (NASDAQ:AMZN). Here’s a quick roundup of today’s brokerage notes on AAPL and AMZN.
Deutsche Bank analyst Sherri Scribner reiterated a Hold rating on shares of Apple, while reducing the price target to $105 (from $125), as iPhone unit growth decelerating significantly. The analyst expects C4Q-15 iPhone units to come in roughly in line with her 76 million unit estimate, however, she has lowered her iPhone estimates to 51 million, down from 62 million for the March quarter. Scribner has also lowered her expectations for the rest of FY-16 and now expects iPhone shipments of 222 million.
Scribner wrote, “Recent negative checks and supply chain datapoints suggest build plans for C1Q-16 and C2Q-16 are being cut and we have lowered our iPhone estimates for the remainder of FY-16. Given slowing smartphone growth, Apple’s declining market share, weakness in China and GM pressure, we see limited sales and profit growth for Apple in FY-16. Driven by our iPhone cuts, we are lowering out estimates and PT to $105. Given limited growth and catalysts, we see shares as range bound and maintain our Hold.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sherri Scribner has a yearly average return of 0.8% and a 48.6% success rate. Scribner has an 13.8% average return when recommending AAPL, and is ranked #1540 out of 3610 analysts.
The overwhelmingly majority of experts still say Apple is a “Buy.” The average forecast is for the stock to hit $142 in the coming months, according to data compiled by TipRanks.
Baird analyst Colin Sebastian reiterated an Outperform rating on shares of Amazon, with a price target of $710, following the news that the company will be acquiring a 75% stake in the French package-delivery company Colis Privé (Amazon already bought 25% of the company in 2014).
Sebastian commented, “We believe news today suggesting Amazon will soon acquire French package-delivery company Colis Privé is yet more evidence supporting our ATL thesis that Amazon will not only build out its own transportation and logistics network, but also offer these as services to third parties. As a reminder, we sized the long-term logistics market opportunity in the $400 billion area, which we believe is similar in size to the AWS opportunity.”
According to TipRanks.com, analyst Colin Sebastian has a yearly average return of 16.3% and a 65.5% success rate. Sebastian has a 37.7% average return when recommending AMZN, and is ranked #38 out of 3610 analysts.
Out of the 44 analysts polled by TipRanks, 36 rate Amazon stock a Buy, while 8 rate the stock a Hold. With a return potential of 12%, the stock’s consensus target price stands at $684.10.