Tuesday Morning’s Market Insights: Apple Inc. (AAPL), Walt Disney Co (DIS), QUALCOMM, Inc. (QCOM), Amgen, Inc. (AMGN)
Apple Inc. (NASDAQ:AAPL) was trading down 1% to about $111 in pre-market trading this morning following news that competitor Samsung is appealing the U.S. Supreme Court ruling that it must pay Apple $548 million in damages. In 2012, Apple sued Samsung regarding the similarities between the companies’ two smartphones. Because the features were protected, the jury ruled in favor of Apple. Regarding this appeal, Samsung stated, “While Samsung prefers to compete in the marketplace, not the courtroom, the company feels that it is important to appeal this case to the US Supreme Court on behalf of all US companies, big and small, that could be affected if this legal precedent stands.” According to TipRanks’ statistics, 25 analysts currently recommend Buying shares of the tech giant while 8 analysts remain on the sidelines. The average 12-month price target between these 33 analysts is $149.91, marking a nearly 33% potential upside from where shares last closed.
Walt Disney Co (NYSE:DIS) is up 1.5% in pre-market trading to $110.98 after the company announced a partnership with Alibaba to promote Disneyland and related merchandise in China. The multiyear agreement is in the form of the DisneyLife; a $125 black device in the shape of Mickey Mouse to be sold on Alibaba’s platform. The device promotes Disney content and visits to Disneyland in Shanghai. The deal helps Disney boost sales and will help Alibaba increase its entertainment offerings. According to the 16 analysts polled by TipRanks, 9 are bullish on Disney and 7 remain on the sidelines. The average 12-month price target is $119.43, marking a 9.22% upside from where shares last closed.
QUALCOMM, Inc. (NASDAQ:QCOM) is up nearly 2% in pre-market trading to $47.73 after the company announced that it will not be splitting. After a comprehensive review, the company concluded that its “current corporate and financial structure best positions Qualcomm to maintain its technology leadership and product strength, so as to drive the greatest long-term stockholder value.” This decision was announced despite pressure from investors to make a change in the company. According to the 14 analysts polled by TipRanks in the last 3 months, 8 recommend buying the tech giant while 6 remain on the sidelines. The 12-month average price target for the company is $64.46, marking a 37% potential upside from current levels.
Amgen, Inc. (NASDAQ:AMGN) is up nearly 2.5% in pre-market trading to $162.02 after analyst Matthew Harrison of Morgan Stanley upgraded the company. The analyst upgraded AMGN to Overweight from Equalweight and increased his price target to $193 from $160. In his rating, Harrison credits the company’s anticipated data for two drugs, set to release next year, stating that “both studies have a high likelihood of success.” He also pointed to the company’s success in delaying the release of competitor biosimilars, drugs with similar active ingredients. The analyst commented that the company’s stock stands at a “2 turn multiple discount to Pharma.” Harrison believes “the key to AMGN is [inhibitor] PCSK9 upside versus biosimilar downside.” According to TipRanks’ statistics, out of the 5 analysts who have rated the company in the last 3 months, 4 gave a Buy rating while 1 remains on the sidelines. The average 12-month price target for the stock is $184.50, marking a 17% upside from where shares last closed.