With just days to go until Apple’s (NASDAQ:AAPL) big September 12 launch event, RBC’s top analyst Amit Daryanani weighs in with a bullish note on the tech giant. Daryanani reiterates an Outperform rating on AAPL, while lifting the price target to $240 (from $225), which implies an upside of 5% from current levels.
The iPhone will be front and center, naturally. The product that has driven Apple stock for the past decade is still key to the company’s continued growth. How many new iPhone models will there be, what shape will they take, and how much will they cost? What other new products might Apple show off on stage in what has all the signs of a monster fall release?
Daryanani answers: “We expect AAPL to launch three new iPhones – two OLED models with 6.5″ and 5.8″ displays; and one LCD model with 6.1″ display. All models are likely to be built on iPhone X design with bezelless displays and a notch. In addition, the home button is likely to go away and all models would support Face ID. We think the premium 6.5″ and 5.8″ OLED models will be priced at $999 and $899, respectively, and have better specs (DRAM, finishing etc) vs. 6.1″ LCD likely at $799. AAPL could also use the iPhone X design in iPad Pro. We think Apple Watch Series 4 would have a larger screen and LTE connectivity as standard. As markets for truly wireless earphones gets crowded, we could see Airpods 2 with water resistance and wireless charging cases. In further push to accessories, AAPL could also finally launch AirPower, the wireless device charging pad announced last year.”
The analyst concluded, “Unlike last year, we don’t see investors fixated on a super cycle, which encourages us to think that a solid well-executed product lineup has potential to surprise in coming quarters. We see the upcoming iPhone cycle resulting in healthy volume growth even though ASPs might see some headwinds y/y due to tough comps. Importantly, we think the cycle will help the install base, enabling continued services growth.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Daryanani has a yearly average return of 25.2% and a 82% success rate. Daryanani has a 35.9% average return when recommending AAPL, and is ranked #27 out of 4872 analysts.
Where does the rest of the Street side on this $1 trillion giant? It appears mostly bullish, as TipRanks analytics demonstrate AAPL as a Buy. Out of 33 analysts polled in the last 3 months, 20 are bullish on Apple stock while 12 remain sidelined, and only one is bearish. However, with a slight downside potential, the stock’s consensus target price currently stands at $218.39.
As of this writing, Apple shares are trading at $226.59, down $1.77 or -0.78%.