Piper Jaffray Sees Augmented Reality on Apple Inc’s (AAPL) Long-Term Road Map; Reiterates Overweight Rating on the Stock
Piper Jaffray's research analyst Gene Munster weighed in today on Apple Inc (NASDAQ:AAPL), as he believes the company has a small team of engineers exploring augmented reality applications. The analyst believes at the core, the group is likely trying to understand a wearable interface that design would ultimately make fashionable/socially acceptable. At this point, he believes that it is difficult to determine if or when these experiments might yield a product.
Munster noted, "Based on conversations with industry contacts within the virtual and augmented reality spaces, we believe Apple has a small team working and exploring the augmented reality space. While augmented reality is likely 10 years away from broader consumer adoption, we believe it has the potential to be as profound a technology platform as the smartphone today. Given the theme around augmented reality is so early, it is difficult to size the opportunity.
However, "We believe Apple's early involvement in the space suggests the company is preparing for the next evolution of computing. Additionally, we believe Apple's evolving fashion advantage means that they can uniquely develop products that consumers will actually want vs prototype style offerings today."
The analyst rates the stock an Overweight with a $160 price target, which represents a potential upside of 24.5% 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 Gene Munster has a total average return of 28.3% and a 68.7% success rate. Munster has a 32.1% average return when recommending AAPL, and is ranked #4 out of 3533 analysts.