Momentum is shining favorably for Apple Inc. (NASDAQ:AAPL) and Walt Disney Co (NYSE:DIS), and top analysts across the Street are taking notice. Drexel Hamilton is less focused on earnings and more on Apple’s ability to get increasingly innovative through the years. For the analyst, Apple has made it clear it is not just any consumer electronic company, but one raring to stay. Likewise, Disney is capitalizing on momentum thanks to its fifteenth chapter of its Marvel Cinematic Universe. With Guardians of the Galaxy rocking a stellar opening, globally and domestically, Piper Jaffray is rooting for a summer of the House of Mouse leading the box office. Let’s dive in:
Apple’s Stock Presents Opportunity for Attractive Upside
Drexel Hamilton analyst Brian White Apple is out with rising bullish sentiment on Apple, believing the market has underestimated the tech giant with an “overly negative” attitude “for all the wrong reasons.” Therefore, as investors catch up to White’s level of confidence and Apple gets ready to hit an iPhone 8 homerun this fall, the analyst reiterates a Buy rating on shares of AAPL while upping the price target from $185 to $202, which represents a just under 32% increase from where the stock is currently trading.
From White’s perspective, “In our view, Apple’s quarterly results will be less important this summer as investors are focused on the iPhone 8 this fall, along with the company’s raised capital distribution initiative, depressed valuation and potential new innovations.”
Moreover, Apple has continued to prove naysayers wrong, as the analyst explains, “Apple’s valuation has been depressed for years as investors grew concerned that Apple would fall victim to the missteps of consumer electronic companies of the past. However, Apple has proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together. We believe this positions Apple very well to capitalize on the trend toward more ‘things’ becoming a computer.”
Ultimately, “We believe the improving sentiment around Apple remains in the early stages of unfolding and the stock offers attractive upside for investors,” contends White.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Brian White is ranked #151 out of 4,567 analysts. White has a 64% success rate and realizes 10.6% in his annual returns. When recommending AAPL, White yields 24.7% in average profits on the stock.
TipRanks analytics show Apple as a Strong Buy. Out of 33 analysts polled by TipRanks in the last 3 months, 26 are bullish on Apple stock, 6 remain sidelined, and 1 is bearish on the stock. With a return potential of nearly 4%, the stock’s consensus target price stands at $159.00.
Disney’s Marvel Momentum Lights up Summer
Disney’s Marvel Cinematic Universe is a formula for success, as far as Piper Jaffray analyst Stan Meyers sees it. The House of Mouse just showcased an impressive $145 million opening for Guardians of the Galaxy, Vol. 2, which though fell a hair behind final tracking still outclassed the analyst’s projections and outperformed 54% past the first movie. With “plenty of momentum overseas,” garnering $283 million for a $428 million gross worldwide in back-to-back weeks, where China scored $49 million this past weekend, and “the widest IMAX opening ever,” Disney’s in great shape.
In reaction to the entertainment giant’s box office zenith, which does not appear to be stopping any time soon, the analyst reiterates an Overweight rating on DIS with a price target of $130, which represents a close to 17% increase from where the shares last closed.
Meyers cheers, “Guardians of the Galaxy, Vol 2. delivers another win for Disney. Disney continues its successful Marvel Cinematic Universe (MCU) strategy with Guardians of the Galaxy, Vol. 2,” adding that investors should also highly anticipate another Pirates of the Caribbean sequel, two Pixars, a Marvel, and another Star Wars on the way.
For Guardians, “We expect the momentum to continue given solid critic reviews (Rotten Tomatoes score of 81%), a rare ‘A’ CinemaScore and limited competition ahead,” notes the analyst, elaborating, “Guardians of the Galaxy, Vol. 2 is keeping the momentum going after the success of Beauty and the Beast, which passed Finding Dory on the all-time domestic charts this weekend. On deck, Disney looks to keep the blockbusters flowing […]”
“We continue to be buyers of Disney as we believe the robust film slate will continue to broaden the company’s moat and drive significant value across key segments,” Meyers concludes, staunchly bullish on the House of Mouse’s golden cinematic opportunities.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Stan Meyers is ranked #2,278 out of 4,567 analysts. Meyers has a 59% success rate and earns 2.6% in his yearly returns. When recommending DIS, Meyers gains 9.5% in average profits on the stock.
TipRanks analytics indicate DIS as a Buy. Based on 13 analysts polled by TipRanks in the last 3 months, 7 rate a Buy on Disney stock, 5 maintain a Hold, while 1 issues a Sell. The 12-month average price target stands at $122.42, marking a nearly 10% upside from where the stock is currently trading.