Drexel Hamilton analyst Brian White weighed in on Apple Inc. (NASDAQ:AAPL), following the news that Samsung, Apple’s main competitor, has issued a worldwide recall of the new Galaxy Note 7 over fears of exploding batteries. The analyst believes that the timing could not have been more propitious for Apple with the iPhone 7/7 Plus expected to be unveiled on September 7 at the company’s Special Event.
White noted, “With market expectations for well over 10 million Galaxy Note 7 units in H2:2016, we believe this issue could bode well for Apple and specifically the iPhone 7 Plus with dual camera that is expected to be unveiled next week. Furthermore, we believe the images and videos of burning Galaxy Note 7 devices in the media will cause some damage to the Samsung brand, further bolstering Apple’s brand.”
The analyst reiterated a Buy rating on shares of Apple, with a price target of $185, which implies an upside of 72% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 8.7% and a 59% success rate. White has an 19.3% average return when recommending AAPL, and is ranked #109 out of 4132 analysts.
Out of the 48 analysts polled by TipRanks, 38 rate Apple stock a Buy, 7 rate the stock a Hold and 3 recommend Sell. With a return potential of 15.5%, the stock’s consensus target price stands at $124.46.
The Wall Street Journal has reported that Alphabet Inc (NASDAQ:GOOGL) intends to add on to its Waze navigation app with a new carpooling service, which will be available to the San Fransisco public starting early Fall this year. Alphabet’s first tests started with Waze in Israel in 2015, followed by a May 2016 pilot program launch near California headquarters.
In its next progression, 25,000 San Fransisco employees who work for large firms, such as Wal-Mart and Adobe, will gain access to the pilot, with a two-ride-a-day limit for commutes. Eventually, the goal is to initiate a roll-out for all Waze app users in San Fransisco.
On back of this news, Merrill Lynch top analyst Justin Post reiterates a Buy rating on GOOGL with a price target of $960, which represents a 21% increase from where the shares last closed.
The analyst wrote, “We view the recent events (exit from Uber, carpool pilot, potential carpool expansion) as further testament to Google’s long-term commitment to the transportation market and achievement of autonomous driving. […] In the meantime, tougher growth comps remain the biggest issue for Alphabet in 3Q, but we continue to like the stock and see several potential product catalysts in 2H including: 1) search improvements (coverage, targeting, ad formats), 2) YouTube traction, 3) new ad initiatives (maps) and 4) new product launches (Home, Allo, Duo).”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Justin Post has achieved a high ranking of #15 out of 4,132 analysts. Post upholds a 75% success rate and yields 19.7% in his annual returns. When recommending GOOGL, Post earns 27.4% in average profits on the stock.
TipRanks analytics exhibit GOOGL as a Strong Buy. Based on 32 analysts polled in the last 3 months, 31 rate a Buy on GOOGL, while 1 maintains a Hold. The consensus price target stands at $942.84, marking a 19% upside from where the stock is currently trading.
Merrill Lynch analyst Vivek Arya provides insight on shares of Intel Corporation (NASDAQ:INTC) on the heels of hosting investor meetings with CEO Brian Krzanich and IR head Trey Campbell in Chicago this past Monday and Tuesday.
For Arya, the tech giant remains a “top pick,” and in light of five key takeaways, reiterates a Buy rating on INTC with a price target of $42, which represents just under a 17% increase from where the shares last closed.
First, Arya praises INTC for considerable growth in cloud computing, “Internet-of-Things,” memory, autonomous cars, 5G wireless, gaming/VR.
Second, the analyst recognizes a focus for INTC management on a fresh rack-scale plan for data center specifically, offering full processor suite, silicon photonics, interconnects, memory, rival-trouncing level software, and greater stickiness.
Fourth, “ARM license could help attract foundry customers (we expect Apple to become one by 2018),” Arya believes.
Fifth, Arya notes, “At parity in 4G wireless, early in 5G. Overall we see INTC as a ~4-5% topline and 9-10% EPS grower, paying 3%+ div yield, and trading at attractive 13x 2017 PE vs. peers at 20x. We expect this gap to close in 2H as INTC’s data center biz returns to 10%+ growth and as PC market stabilizes.”
Ultimately, though data center growth and competition appeared to dwarf the company considering its weak 1H sales growth, the analyst finds INTC management “comfortable with 2H recovery” and expects the company to be in a stellar position to gain 30% or more shares of Apple’s forthcoming iPhone 7 launch.
“The 2018 Korea Olympics could be key testing ground for 5G and we expect INTC to be prominent,” he concludes.
According to TipRanks, five-star analyst Vivek Arya is ranked #295 out of 4,132 analysts. Arya has a 55% success rate and yields 11.9% in his annual returns. When recommending INTC, Arya earns 3.5% in annual profits on the stock.
TipRanks analytics indicate INTC as a Buy. Based on 28 analysts polled in the last 3 months, 18 rate a Buy on INTC, 7 maintain a Hold, while 3 issue a Sell. The consensus price target stands at $38.13, marking a nearly 6% upside from where the stock is currently trading.