Apple Inc. (AAPL): Analysts Provide Update From Launch Event


apple launch event

Analysts are attending Apple Inc. (NASDAQ:AAPL)’s much anticipated launch event in San Francisco, which is just wrapping up. Today, we are featuring two analysts that provided commentary straight from the event.

Piper Jaffray

Piper Jaffray analyst Gene Munster points out that today’s Apple announcements on the iPhone 6S, new Apple TV and iPad Pro were largely as expected. That said, he believes there is substance in the new products, most notably that the iPhone 6S should have enough appeal, along with the lower price for existing iPhone 6 and Plus, to allow Apple to continue to gain share at the high end of the phone market. Munster is expecting 4% y/y iPhone unit growth vs. the Street at flat in 2016. Updates to Apple TV should add a little less than 1% to Street estimates in 2016 (not in our model). Finally, the new iPad Pro is incremental but does not change our belief that iPad units will be down 4% in 2016.

The analyst maintained an Overweight rating on AAPL with a price target of $172, which implies an upside of 55% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gene Munster has a total average return of 20.9% and a 60.2% success rate. Munster has a 26.7% average return when recommending AAPL, and is ranked #7 out of 3752 analysts.

FBR Capital

FBR Capital analyst Daniel Ives noted that the main focus of today’s event was around the launch of Apple’s next generation iPhone 6s/6s +, along with the unveiling of a larger 12.9-inch iPad Pro, and next generation Apple TV. Coming out of the launch event, he thinks the Street will be laser focused on if these iterative improvements in the 6s can spur a surge of upgrades (e.g., Force Touch, A9 system-on-chip, 12-megapixel camera, 7000 series aluminum chassis) across the Apple customer base. With less than 30% of customers upgrading to iPhone 6 to date, coupled by this innovative 6s model, Ives believes the stage is set for Apple to catalyze growth on the heels of this super-cycle product upgrade for the coming quarters and thus help reverse the negative investor tide (e.g. China) hovering over this “prove me” name.

The analyst reiterated an Outperform rating on Apple shares, with a price target of $175, which represents a potential upside of 59% from where the stock is currently trading.

According to TipRanks, Ives has a total average return of 3.9% and a 44.6% success rate. Ives has a -8.1% average return when recommending AAPL, and is ranked #998 out of 3752 analysts.

Out of the 51 analysts polled by TipRanks, 36 rate Apple stock a Buy, 13 rate the stock a Hold and 2 recommend to Sell. With a return potential of 32%, the stock’s consensus target price stands at $146.73.

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