Apple Grows Its Leading Smartphone Market Share
Top analyst Michael Walkley at Canaccord pinpoints steadfast resilience in Apple Inc. (NASDAQ:AAPL) North America iPhone sales after a fresh survey, indicating the tech titan is benefiting from a combination of carrier promotions as well as less threat of new competitors in terms of Android OEMs.
However, while the titan took hold of 64% of industry profits, this indicates a pullback from its second fiscal quarter, with the analyst finding Samsung’s Galaxy S8 launch and Chinese OEM momentum as reasons for the decline. Notably, the analyst assesses “steady iPhone sales ahead of September launch.”
Especially with the probable launch of three forthcoming brand new iPhone models, Walkley surmises, “Apple will increase market share and grow its share of industry profits given the anticipated higher ASPs for the OLED iPhone and thus higher gross margin dollars. Our June quarter smartphone industry analysis and results by Apple, Samsung, and other leading smartphone OEMs suggest further market share consolidation among leading OEMs Apple, Samsung, Huawei, Oppo and Vivo. We believe Apple continues to grow its leading market share of the premium-tier smartphone market with double digit growth of its installed base during the quarter. We believe the iPhone installed base will exceed 635M exiting C2017, and this impressive installed base should drive strong iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns. We anticipate a stronger upgrade cycle in C2018 with the 10-year anniversary iPhone 8, as our surveys indicate strong consumer interest in and anticipation for new iPhones anticipated to launch in September.”
As such, the analyst reiterates a Buy rating on shares of AAPL with a price target of $180, which represents a 12% increase from where the stock is currently trading.
Michael Walkley has a very good TipRanks score with a 63% success rate and a high ranking of #40 out of 4,611 analysts. Walkley garners 18.7% in his yearly returns. When recommending AAPL, Walkley gains 24.1% in average profits on the stock.
TipRanks analytics exhibit AAPL as a Buy. Out of 34 analysts polled by TipRanks in the last 3 months, 25 are bullish on Apple stock while 9 remain sidelined. With a return potential of 6%, the stock’s consensus target price stands at $170.10.
Salesforce.com Gets a Price Target Lift
salesforce.com, inc. (NYSE:CRM) delivered such an impressive second fiscal quarter print for 2018 that top analyst Richard Davis at Canaccord bets that even the most cantankerous of bears has to admit the cloud-based software maker hit a homerun. This robust earnings showcase marks CRM’s sixth back-to-back quarter outclass and especially should shares hover down, the analyst encourages investors: “BUY it.”
Cheering from a bullish megaphone, the analyst reiterates a Buy rating on CRM while boosting the price target from $100 to $110, which implies a 16% upside from current levels.
For the second fiscal quarter of 2018, CRM reported upside in revenue, billings, and free cash flow while lifting full year revenue outlook by $100 million. This signals the company’s second consecutive quarter revenue guide lift, and the CRM team is looking for 24% top line growth to a total revenue of $10.4 billion in fiscal 2018.
Davis notes that the one bearish shortfall of CRM’s print lies in its third fiscal quarter guidance that underperformed his expectations, elaborating, “The only blemish […] was the implied FQ3 billings guide, which we’d attribute entirely to timing as our full year billings growth estimate is unchanged.”
Overall, “All but the most curmudgeonly observer would have to accept Salesforce’s results as exceptional. The stock gyrated a bit after-hours (down 1%), so we are thrilled to get a chance to buy CRM into what we expect to be a seasonally strong six-month cycle for the stock – driven by feature improvements in AI, the likely signing of a mega-deal or two, and the Woodstock of software, Dreamforce. We inched our target price up to a 20% upside over the next 12 months, but we suspect that our estimates, and probably the appreciation that we expect for the shares will be a baseline. We have been highlighting three large cap growth stocks this year – Salesforce, Adobe and ServiceNow – and given current valuations and fundamental outlooks, CRM is our favorite of these three exceptional firms,” contends Davis.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Richard Davis has achieved an impressive ranking of #3 out of 4,611 analysts. Davis realizes 25.2% in his annual returns. When recommending CRM, Davis yields 12.6% in average profits on the stock.
TipRanks analytics indicate CRM as a Strong Buy. Based on 15 analysts polled by TipRanks in the last 3 months, 14 rate a Buy on Salesforce.com stock while 1 maintains a Hold. The 12-month average price target stands at $104.36, marking a 12% upside from where the stock is currently trading.