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Two of Wall Street’s Top Analysts Are Bulls on These Tech Giants: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN)

Apple in strong standing for upside in its FQ1 print; Amazon showcases meaningful prospects to capture U.S. wallet share.


Apple Geared for First Fiscal Quarter Beat of 2018

Ahead of the first fiscal quarter print from Apple Inc. (NASDAQ:AAPL) in the new year, one bullish voice in the tech-verse already has his eyes eager for an outclass from this tech machine come February 1st.

Amit Daryanani at RBC Capital, one of the Street’s most successful analysts that collects the biggest gains, looks for upside from Apple on back of a robust one-two punch from the iPhone X as well as Services, both which he commends for performance strength.

Therefore, calling for upwards of $14 in EPS power by next fiscal year, the analyst reiterates an Outperform rating on AAPL stock with a price target of $190, which implies a close to 10% upside from current levels.

Overall, “AAPL is positioned to print Dec-qtr results ahead of expectations and likely provide an update on its tax-rate and repatriation plans post tax reform. Fundamentally, we think upside will stem from better iPhone ASP trends (both mix and memory tailwind), services growth/acceleration, and tailwinds from channel fill. While investors have been debating about implications/drivers behind short lead-times for iPhone X, we think this reflects supply chain bottlenecks being alleviated vs. tepid demand for iPhone X. Net/Net: Our positive bias on AAPL is driven by: a) iPhone ASP enabling upside to revenues; b) gross-margin upside from mix (more services and iPhone memory); c) potential for lower tax-rate and buyback tailwinds, which should provide a path toward $14+ EPS by FY19; and d) F/X tailwinds (~30bps in Dec-qtr), which should help revenues/GM’s although hedges could limit tailwind near-term,” Daryanani highlights.

For the first fiscal quarter of 2018, the analyst forecasts AAPL to hit $86 billion in revenue and $3.74 in EPS, above the Street’s expectations calling for $86.2 billion in revenue and $3.78 in EPS. By the second fiscal quarter, the analyst anticipates the company will scale down to $66.9 billion in revenue and $2.68 in EPS, less than the Street’s estimates of $68.9 billion in revenue and $2.90 in EPS.

Amit Daryanani has a very good TipRanks score with an impressive 93% success rate and one of the highest rankings: #5 out of 4,379 analysts. Daryanani realizes 31.9% in his annual returns. When recommending AAPL, Daryanani earns 33.3% in average profits on the stock.

TipRanks shows Apple has magnetized a solid bullish camp on Wall Street. Based on 28 analysts polled in the last 3 months, 21 rate a Buy on the tech titan with 7 maintaining a Hold. Is the stock overvalued or undervalued based on these analyst expectations? Consider that the 12-month average price target of $191.00 boasts upside potential of nearly 10%.

Amazon Draws Price Target Jump on Domestic Wallet Share Gains Potential

Could Amazon.com, Inc. (NASDAQ:AMZN) be circling a big opportunity to capture domestic wallet share? One of Wall Street’s best performing analysts ventures yes following promising survey results that polled 1,00 domestic international users. The verdict? As it turns out, the majority respondents do not use Amazon as much as most might anticipate, which translates to a compelling runway ahead of gains prospects.

In reaction, Piper Jaffray’s Michael Olson spotlights a “significant opportunity” for the e-commerce king to “gain wallet share of U.S. internet users,” leading him to maintain an Overweight rating on AMZN stock while hiking the price target from $1,200 to $1,400, which implies an almost 13% upside from current levels.

“In the ‘echo chamber’ of the investor community it is widely believed that a majority of U.S. internet users are allocating a significant portion of their holiday wallet share to Amazon. We recently surveyed 1,000 domestic internet users and found that most respondents use Amazon far more sparingly than many would expect. Additionally, looking at data on overall holiday retail spend in the U.S. vs. our estimated Amazon domestic holiday GMV suggests only low-to-mid single digit penetration for the company. The conclusion is that Amazon, despite its size and continued strong growth, is arguably still in the early innings of its share gain potential, even in the company’s most penetrated market,” writes Olson, who asserts that the “bottom line” of his bullish case is positive: “most domestic internet users have a significant opportunity to increase their Amazon holiday wallet share allocation.”

Michael Olson has a very good TipRanks score with a 67% success rate and a high ranking of #73 out of 4,739 analysts. Olson garners 19.5% in his yearly returns. When recommending AMZN, Olson yields 32.2% in average profits on the stock.

TipRanks indicates Amazon as a strong favorite on the Street among analysts, with a whopping 32 out of 33 analysts bullish on the e-commerce stock and just 1 left on the sidelines. With a return potential of 6%, the stock’s consensus target price stands at $1,331.90.