The Countdown to Apple’s (AAPL) ‘Gather Round’ Event Begins


The countdown for Apple’s (AAPL) mega event of the year has begun. On the 11th anniversary of the iPhone, the buzz around one of the world’s most iconic phones will reach its peak on September 12 when Apple’s newest line-up will be unveiled at the Steve Jobs Theater on the new Apple Park campus.

RBC’s top analyst Amit Daryanani commented, “We think the key debate heading into 9/12 event is: a) iPhone pricing for the three new models and b) timing of LCD model availability. The highlight of the event will be the trio of new smartphones AAPL will launch – iPhone XS (5.8” OLED), iPhone XS Max (6.5” OLED) and lower priced 6.1” LCD iPhone. Furthermore, we expect new products like Apple Watch Series 4, iPad Pro, AirPods 2, and potentially AirPower.”

Daryanani reiterates an Outperform rating on Apple shares, with a price target of $240, which represents a potential upside of 7% from where the stock is currently trading.

“We are sticking with our OP rating and $240 target as we think AAPL is uniquely positioned to sustain mid-single digit sales and low-to-mid teens EPS growth over the next several years even if iPhone units are flat. Near-term, we see upside from GM’s trending higher (lower memory and S cycle benefits) and potential for better iPhone sell through given limited expectations,” the analyst added.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Daryanani has a yearly average return of 24.1% and a 81% success rate. Daryanani has a 33.5% average return when recommending AAPL, and is ranked #30 out of 4869 analysts.

The initial word out on the Street echoes Daryanani’s bullish conviction on the iPhone maker, as TipRanks analytics showcase AAPL as a Buy. Based on 33 analysts polled in the last 3 months, 20 are bullish on Apple stock, 12 remain sidelined, while only 1 is bearish (New Street’s Pierre Ferragu). However, the 12-month average price target stands at $223.28, which implies a slight downside potential. (See AAPL’s price targets and analyst ratings on TipRanks)

 

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