Equity analysts at the Brokerage firms Stifel Nicolaus and Deutsche Bank are weighing in on the technology giant Apple Inc. (NASDAQ:AAPL) and industrial giant General Electric Company (NYSE:GE). The analysts reflect on the non-Android smartphone growth in China and General Electric’s downside risks.
In a research report issued today, Stifel Nicolaus analyst Aaron Rakers reiterated a Buy rating on shares of Apple, with a price target of $150, following a round of data checks suggesting a growth of non-Android smartphone in China last month.
Rakers noted, “Non-Android Smartphones Increased 68.5% Y/Y. Within the data we track, we would note that Android smartphones are estimated to have accounted for approximately 77% of total October 2015 China domestic smartphone shipments, a decline from 85.1% in September 2015 and 84% in October 2014. This would imply Android shipments up 7% y/y, but down 20% m/m. The implied total non-Android shipments were ~7.5 million in October 2015, up 68.5% y/y and up 34% from the prior month and marking the first full month of iPhone 6s/+ Availability.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Aaron Rakers has a total average return of 13.3% and a 54% success rate. Rakers has a 11.9% average return when recommending AAPL, and is ranked #313 out of 3842 analysts.
Out of the 50 analysts polled by TipRanks, 37 rate Apple stock a Buy, 11 rate the stock a Hold and 2 recommend Sell. With a return potential of 31%, the stock’s consensus target price stands at $148.86.
General Electric Company
Deutsche Bank analyst John G. Inch came out today with a cautious stance on General Electric, pointing to a few downside risks as the Synchrony Financial split off transaction nears completion.
Inch noted, “We believe GE’s shares could correct lower near term as the SYF split off transaction nears completion, among other factors which we outline in this report. In general, we continue to believe GE is on the right track strategically, while significant expected share repurchase next year should still provide an important EPS growth catalyst and share price buffer.”
Furthermore, “With the industrial economy currently deteriorating, the risks for GE appear to be rising. In turn, we believe too many investors have been willing to look too far into the future (ie, 2018+) as a basis for their bullish GE stance despite potentially rising risks to near term fundamentals coupled with ongoing execution risks toward successfully selling off GE Capital’s overseas assets.”
The analyst concluded, “With the SYF deal already in our forecast numbers and the transaction now nearing completion, the end of this event could bring about something of a share price “unwind” for GE.”
Inch reiterated a Hold rating on General Electric, with a price target of $28, which represents a potential downside of 8% from where the stock is currently trading.
According to TipRanks.com, analyst John G. Inch has a total average return of 12% and a 73.3% success rate. Inch has a 6.7% average return when recommending GE, and is ranked #613 out of 3842 analysts.
Out of the 9 analysts polled by TipRanks, 7 rate General Electric stock a Buy, while 2 rate the stock a Hold. With a return potential of 2.99%, the stock’s consensus target price stands at $31.38.