Wall Street’s top analysts are chiming in with bullish forecasts on two of the tech world’s biggest giants, Apple Inc. (NASDAQ:AAPL) and eBay Inc (NASDAQ:EBAY). One analyst’s iPhone 7 product survey results reveal Apple’s iPhone 7 sales are trending positively whereas another analyst’s tracking data showcases that eBay is positioning itself for consistent growth for quarters to come. Let’s take a closer look:
Canaccord top analyst Michael Walkley is out with a research report on shares of Apple after evaluating iPhone 7 products through surveys that have proven demand for the new products “remains healthy with ongoing strong mix to higher ASP SKUs.”
Positive on the tech titan on back of these favorable survey results, the analyst reiterates a Buy rating on AAPL with a $140 price target, which represents just under a 24% increase from where the stock is currently trading.
Additionally, factoring raised iPhone projections coupled with ASPs outclassing the Street, Walkley boosts EPS expectations for the fiscal year of 2017 from $8.93 to $9.07 and for the fiscal year of 2018 from $10.12 to $10.18.
Apple is winning big with its upgraded Plus take on the iPhone 7. Walkley’s U.S. surveys persistently demonstrate iPhone 7 Plus models are going out of stock more regularly than the iPhone 7.
The analyst opines, “Between the aggressive U.S. carrier promotions, favorable premium tier competitive environment due to the continued Galaxy Note 7 battery issues, improved iPhone 7 features and functionality, and stronger than anticipated initial consumer demand, we believe initial iPhone 7 sales continue to trend positively, leading us to increase our December quarter iPhone estimate from 75M to 76.5M. We believe the iPhone 6 and iPhone 6s products enabled Apple to materially increase its market share and installed base of the premium tier smartphone market.”
In fact, Walkley believes these are the trends that led to an iPhone installed based growth to the tune of over 500 million upon exiting the year 2015, indicating that collective connected Apple devices eclipsed 1 billion users.
“This impressive installed base should drive strong future iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns programs of $250B through F2018,” Walkley contends.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Michael Walkley has achieved a high ranking of #29 out of 4,190 analysts. Walkley upholds a 61% success rate and garners 14.9% in his annual returns. When recommending AAPL, Walkley earns 22.7% in average profits on the stock.
TipRanks analytics exhibit 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 12-month price target stands at $128.41, marking a nearly 14% upside from where the shares last closed.
Baird top analyst Colin Sebastian dives in on eBay after the analyst’s proprietary eBay Tracker indicates September will be another positive month of “continued steady growth” for the online auction and e-commerce leader.
As such, the analyst reiterates an Outperform rating on EBAY with a price target of $35, which represents just under a 9% increase from where the shares last closed.
Sebastian notes, “As eBay positions itself for improving growth in coming quarters, our monthly eBay Tracker indicates that volume growth in September on ebay.com continued to grow in the mid-single-digit range year-over-year, with a slight improvement from August. While F/X headwinds may persist, we expect that shares would react positively to any further improvements in core growth, and we remain constructive on shares. For now, our Q3 growth expectations are unchanged.”
Ultimately, “We continue to believe that EBAY shares represent a good value in large-cap Internet amid ongoing positive secular e-commerce growth trends and the potential for accelerating growth in the quarters and year ahead as core structured data initiatives roll out more broadly,” Sebastian concludes.
Though Facebook just launched its new Marketplace feature app launch that will enable users to buy and sell items within the mobile app, the analyst does not anticipate this will derail eBay’s positive prospects when glancing at the near-term.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Colin Sebastian has achieved a high ranking of #10 out of 4,190 analysts. Sebastian upholds a 76% success rate and realizes 19.9% in his yearly returns. When recommending EBAY, Sebastian yields 18.7% in average profits on the stock.
TipRanks analytics demonstrate EBAY as a Buy. Based on 23 analysts polled in the last 3 months, 10 rate a Buy on EBAY, 11 maintain a Hold, while 2 issue a Sell. The consensus price target stands at $31.64, marking a nearly 2% downside from where the stock is currently trading.