Drexel Hamilton top analyst Brian White is out with a research report on Apple Inc. (NASDAQ:AAPL) after assessing the results of all of the companies in his Apple Monitor’s reported September sales. Though the results were weaker than usual “historical averages,” White notes “this was the best quarter ever.”
As such, the analyst reiterates a Buy rating on AAPL with a price target of $185, which represents a 62% increase from where the shares last closed. For now, Apple remains this analyst’s top pick for the second half of 2016.
White asserts, “We are not concerned about a weaker than average September given that August of this year was the best August ever and July of this year was the second-best July on record.”
Furthermore, the analyst notes that third-quarter sales for his Apple Monitor surged 32% quarter-over-quarter and “well above the average increase of 19% over the past eleven years.”
“In our view, the next big iPhone market that could open up for Apple is India and today the iPhone 7/7 Plus launched in the country. We believe Apple has an opportunity to generate $10-15 billion in annual sales in India by FY:21,” White concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Brian White has achieved a high ranking of #83 out of 4,190 analysts. White upholds a 62% success rate and garners 9.3% in his yearly returns. When recommending AAPL, White gains 20% in average profits on the stock.
TipRanks analytics demonstrate AAPL as a Strong Buy. Based on 36 analysts polled in the last 3 months, 31 rate a Buy on AAPL, 4 maintain a Hold, while 1 issues a Sell. The consensus price target stands at $128.52, marking a nearly 13% upside from where the stock is currently trading.
Facebook Inc (NASDAQ:FB) is set to deliver its third-quarter results on November 2nd with a corporate conference call scheduled after the release.
Ahead of earnings, William Blair analyst Ralph Schackart reiterates an Outperform rating on FB without listing a price target.
Schackart has had discussions with industry participants and anticipates an “in-line” quarter on FB advertising revenue. Currently, the Street projects $6.69 billion, which is a notable 56% year-over-year increase.
Though Facebook has been averaging 6% in ad revenue beats the past four consecutive quarters, the analyst believes “these outsized beats may be harder to come by going forward […] as it faces tougher third- and fourth-quarter comps.” Still, the analyst acknowledges he predicted the same this past quarter as well and ultimately “Facebook proved us wrong.”
Schackart notes the social media titan predicts a decline in successive ad revenue growth rates in its third and fourth quarters, and therefore, investors continue to focus on “tough comparisons” FB confronts in the second half of 2016.
“Finally, after conversations with a larger digital agency, we do not believe Facebook’s miscalculation of average video watch-time will have a meaningful impact on revenue this quarter or going forward—as this media is not purchased on this metric. Rather, we view it as an unfortunate misstep that may give video advertisers and their agencies a bit more leverage in their negotiations with Facebook for more transparency, better reporting, and third-party measurement,” Schackart opines.
The analyst sees the stock trading at a 22% increase year-to-date and near-term, Schackart anticipates shares could trade up to imply an upside of about $20. For now, the analyst contends FB’s mobile newsfeed, the company’s core app, will continue to provide momentum for the back half of 2016, as it has done the past several quarters that translated to Street beats. Additionally, Schackart projects a rise in new product adoption, from video ads to Instagram, which could drive a surge in earnings equal to or greater than 10%.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Ralph Schackart is ranked #404 out of 4,190 analysts. Schackart has a 64% success rate and gains 12.5% in his annual returns. When recommending FB, Schackart earns 36.0% in average profits on the stock.
TipRanks analytics exhibit FB as a Strong Buy. Based on 37 analysts polled in the last 3 months, 32 rate a Buy on FB, while 5 maintain a Hold. The consensus price target stands at $156.26, marking a 21% upside from where the stock is currently trading.