Michael Olson Top Analyst Piper Jaffray
Top analyst Michael Olson at Piper Jaffray continues to place his upside odds on Apple Inc. (NASDAQ:AAPL), particularly following his seventh annual survey polling over 150 Chief Information Officers (CIOs) spanning beyond 10 industries. The verdict bodes quite well for Apple, showing “continued dominant enterprise share for iOS.”
“Within the survey we asked CIOs about mobile platforms/devices supported and deployed. iOS maintained dominant share of mobile platforms supported, devices provided and expectations for further investment. The results were, however, flat-to-slightly down vs. last year, as Android gained modest share. We are positive on AAPL for FY18 based on potential for strong upgrade rates as users move to new form factor devices (and Apple potentially releases a wider array of ‘X-style’ iPhones in the fall), but we will keep an eye on this enterprise dynamic, watching for material changes in share,” Olson asserts.
In each of the three components of the 2018 survey (mobile platforms supported, devices provided to employees, as well as platforms with the most planned future investment at play), the analyst notes, “iOS continued to have a significant lead in all three.” Even if that lead suffered a “slight slippage” as Android and Windows catch up, of which Olson will keep a close watch on in the forthcoming quarters, “market share lead” for Apple’s mobile operating system still boasts 10 ppt or more in every category.
Looking ahead, Olson expects “a wider array of new form factor devices, similar to iPhone X, will launch in Fall-18,” adding: “While we have no direct knowledge of Apple’s launch plans for next year, 3D sensing component suppliers are being told to generate volume for the Fall-18 launch that is 2-3x what was made for iPhone X in Fall-17.” This “super-long” cycle for Apple of “next gen iPhones should drive strong ongoing upgrades well into FY19,” predicts Olson, who notably is one of Wall Street’s best performing analysts.
Therefore, the analyst reiterates an Overweight rating on AAPL stock with a price target of $200, which implies a nearly 14% upside from current levels.
Michael Olson has a very good TipRanks score with a 68% success rate and a high ranking of #64 out of 4,743 analysts. Olson garners 19.9% in his yearly returns. When recommending AAPL, Olson realizes 21.3% in average profits on the stock.
TipRanks illustrates a strong analyst consensus when it comes to Apple’s market opportunity, with 21 out of 28 analysts polled in the last 3 months betting on this tech giant and just 7 opting to hedge their bets for now. With a return potential of nearly 9%, the stock’s consensus target price stands at $191.00.