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Smile, Apple (AAPL) Monitor Was Well Above Seasonal in October


Monness analyst Brian White reports on business in Taiwan today, writing that sales in the month of October were “respectable” for a collection of Taiwanese tech companies he calls the “Apple Monitor.” The monitor captures the monthly sales of Apple’s (AAPL) key Taiwanese suppliers.

“October sales for our Apple Monitor rose by 23% MoM, well above the average October performance of up 6% over the past thirteen years. We believe our Apple Monitor’s strong October performance reflects the ramp of two new iPad Pro models, a new MacBook Air and the new Mac mini that were unveiled on October 30. As the market remains busy conjuring up grassy knoll theories behind Apple’s decision to pull its quarterly unit numbers, we believe this change will ultimately refocus investors on the attractive economics and value creation occurring on Planet Apple at large,” White said.

“Moreover, we believe the stock remains underappreciated with a depressed valuation at a time when Apple is benefiting from rising ASPs across the portfolio, strong growth in Services, a leadership position in data privacy and the financial strength to weather any potential economic storm on the horizon,” White concluded.

Overall, White rates AAPL stock a Buy with a $300 price target, which implies over 50% from current levels.

Is Brian White’s opinion of value? We believe it is. White is one of Apple’s biggest bulls, and he is also one of the top analysts on Wall Street, according to TipRanks. White has a yearly average return of 17.9% and a 63% success rate. Moreoever, he has a 20.4% average return when recommending AAPL, and is ranked #71 out of 4905 analysts.

There are 35 analysts who have evaluated AAPL stock in the last three months, but not all of them are as bullish as White. TipRanks finds 22 suggest Buy, 12 are sidelined and 1 is bearish. The stock has a small upside of about 22%, bringing the consensus price target to $239.35. (See AAPL’S price targets and analyst ratings on TipRanks)