Apple (AAPL): Suppliers Ramping Up, Top Analyst Reiterates Buy on the Stock
Monness analyst Brian White today reiterates a Buy rating on shares of Apple (NASDAQ:AAPL) with a $275 price target, writing that sales in the month of August for a collection of electronics companies he calls the “Apple Monitor” — because some substantial portion of their business is supplying Apple — were stronger than historical seasonality.
White noted, “August sales for our Apple Monitor rose by 15% MoM, better than the average August performance of up 9% over the past thirteen years. Given Apple has historically introduced its latest iPhone innovations in September, this year’s ramp has been reflected in the component supply chain since our June Apple Monitor was released. With two months of sales results for our Apple Monitor reported, and assuming average MoM sales performance in the month of September, we estimate 3Q:CY18 sales for our Apple Monitor will increase by 48% QoQ, much better than the average September quarter increase of 22% over the past thirteen years.”
“Although we are pleased to see the market beginning to exhibit more respect for Apple’s stock of late, we continue to believe Apple remains one of the most underappreciated stocks in the world with a valuation that remains depressed (14.8x our CY:19 EPS estimate, excash). Moreover, we eagerly await the new innovations Apple has in store for us next week during Apple’s Special Event at the Steve Jobs Theater,” the analyst concluded.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 19.2% and a 68% success rate. White has a 22% average return when recommending AAPL, and is ranked #76 out of 4875 analysts.
Out of the 38 analysts polled in the past 12 months, 22 rate Apple stock a Buy, 15 rate the stock a Hold and 1 recommends Sell. With a downside potential of 4.5%, the stock’s consensus target price stands at $214.25.