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Old Jul 2, 2014, 10:25 AM   #1
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Analysts Eyeing Record Highs for Apple's Stock Price, Rushing to Raise Price Targets




Analysts were sour on Apple last year, believing the company's stock would not climb over the $700 mark it crossed briefly in September 2012. Now with a 7-for-1 stock split and a continuing stock repurchase plan, this negative sentiment is changing with analysts revising their price targets for the again-hot stock, reports Fortune.

Table compiled by Fortune's Philip Elmer-DeWitt.
In recent weeks, analysts have adjusted their price targets by as much as 30 percent, with prices now ranging from a low of $87 from Morningstar's Brian Collelo up to a high of $124 from Stephen Turner of Hilliard Lyons. With the recent upgrades, the analysts' average price targets are now above Apple's all-time high once the stock split is accounted for.

As noted by BTIG's Walter Piecyk, some of this optimism stems from new U.S. carrier plans that will expand the number of customers eligible to upgrade to Apple's next generation iPhone and new leasing options that offer upgrades with a minimal upfront cost.
Quote:
"Historically we estimate that ~20% of AT&T's subscriber base was eligible for an upgrade during an iPhone launch quarter. That eligibility dropped to a low of the mid-teens in the second half of 2013 due to the stricter upgrade policies. We expect AT&T's new Mobile Share Value plan to increase the percentage of AT&T post-paid subscriber base eligible to upgrade to over 65% by the time the next iPhone launches. In absolute terms that is the difference between 10 or 11 million eligible for upgrades and 45-50 million."
Wireless carriers in the U.S. have been modifying their consumer cellular and data plans, introducing no-contract options and new incentives that make it easier for customers to upgrade to new phones. Much of this change has been initiated by T-Mobile, which started its Uncarrier promotion in early 2013 with a no-contract Simple Choice plan that lets you pay for a phone in installments with a low upfront cost and early upgrades. Other carriers, such as AT&T, have followed suits with similar plans.

Article Link: Analysts Eyeing Record Highs for Apple's Stock Price, Rushing to Raise Price Targets
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Old Jul 2, 2014, 10:27 AM   #2
JaySoul
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If you're going to buy, buy now.
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Old Jul 2, 2014, 10:28 AM   #3
512ke
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Most analysts = iSheep
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Old Jul 2, 2014, 10:33 AM   #4
medazinol
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There was a time in 1996 that I owned a bunch of Apple stock. Let's just say I wish I had been able to hold onto it as I surely would have retired a few years ago due to the gains Never again, I'm buying and holding.
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Old Jul 2, 2014, 10:33 AM   #5
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Other carriers, such as AT&T, have followed suits
I try not to do that. They will have you arrested.
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Old Jul 2, 2014, 10:34 AM   #6
Alumeenium
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incremental updates do not create stock value in a over saturated mobile market

nor does a do nothing head of retail

nor does an over hyped stupid wearable no one "needs"
(people need phones they don't need a watch)

nor does an iMac with the speed and power of a mobile device

AAPL target = $84
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Old Jul 2, 2014, 10:35 AM   #7
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Aren't these the same people who were trashing Apple not that long ago?
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Old Jul 2, 2014, 10:35 AM   #8
IJ Reilly
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Quote:
Originally Posted by Alumeenium View Post
incremental updates do not create stock value in a over saturated mobile market

nor does a do nothing head of retail

nor does an over hyped stupid wearable no one "needs"
(people need phones they don't need a watch)

nor does an iMac with the speed and power of a mobile device

AAPL target = $84
So you are shorting the stock, right?
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Old Jul 2, 2014, 10:37 AM   #9
Crzyrio
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Quote:
Originally Posted by Alumeenium View Post
incremental updates do not create stock value in a over saturated mobile market

nor does a do nothing head of retail

nor does an over hyped stupid wearable no one "needs"
(people need phones they don't need a watch)

nor does an iMac with the speed and power of a mobile device

AAPL target = $84
Until the iPhone 3G release, I never felt the need for a 'smart phone'. And today cant go without it for more than a few hours

Maybe after the release of a stupid wearable product you will see the need for it.
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Old Jul 2, 2014, 10:48 AM   #10
GeneralChang
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I have a plugin on my browser that replaces “analyst” with “medicine man.” It makes articles like this really quite entertaining.
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Old Jul 2, 2014, 10:49 AM   #11
Small White Car
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Originally Posted by Eadfrith View Post
Aren't these the same people who were trashing Apple not that long ago?
Well, yes, that's how the stock market works. Things go up and then they go down. The last year has been a 'down' year for Apple.

Analysts are supposed to speak negatively about a stock in those times. That's their job. And now that it's going back up they're supposed to talk about that too.

No one needs an analyst who always holds the same opinion about a company, as you seem to want.
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Old Jul 2, 2014, 10:50 AM   #12
Jambalaya
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Quote:
Originally Posted by Alumeenium View Post
incremental updates do not create stock value in a over saturated mobile market

nor does a do nothing head of retail

nor does an over hyped stupid wearable no one "needs"
(people need phones they don't need a watch)

nor does an iMac with the speed and power of a mobile device

AAPL target = $84
Apple is in many different markets
Ahrendts is a very talent executive who transformed Burberry, she will be the next CEO and she will be proven to have been a very good hire.
The iPhone is much more than a phone, that's the point. I hardly ever make or receive a call on my mobile. The iPhone wasn't successful due to it being a phone.
Budget iMac isn't so compelling versus better models for sure but it is at a price point which will sell.

If you think the target is $84 you should sell the stock short, I'll wager that you'll be proved wrong if you do so and you'll lose a lot of money.
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Old Jul 2, 2014, 10:51 AM   #13
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Remember.....

"It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them."
— Steve Jobs
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Old Jul 2, 2014, 10:52 AM   #14
Jambalaya
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Originally Posted by Eadfrith View Post
Aren't these the same people who were trashing Apple not that long ago?
Apple has changed strategy in a number of areas, not least in re-purchasing stock. I think the hiring of Ahrendts is very significant.
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Old Jul 2, 2014, 10:54 AM   #15
Cyborg21
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Quote:
Originally Posted by Alumeenium View Post
incremental updates do not create stock value in a over saturated mobile market

nor does a do nothing head of retail

nor does an over hyped stupid wearable no one "needs"
(people need phones they don't need a watch)

nor does an iMac with the speed and power of a mobile device

AAPL target = $84
Sorry but I see same comment before Apple releases a new product. Nobody needed an ultra portable laptop (MacBook Air), nobody needed a touchscreen smartphone with tons of apps (iPhone), nobody needed a very small music player (iPod), nobody needed an all-in-one computer (iMac), nobody needed a tablet (iPad). See? I saw a lot of people saying that iPad will be a failure because there are netbooks, or iPhone will fail because physical keyboard is very important etc. Just wait for a couple years, I bet you will get an iWatch or clone iWatch which is made by S*cough* or G*cough* companies.
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Old Jul 2, 2014, 10:54 AM   #16
TC03
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Wireless carriers in the U.S. have been modifying their consumer cellular and data plans, introducing no-contract options and new incentives that make it easier for customers to upgrade to new phones. Much of this change has been initiated by T-Mobile, which started its Uncarrier promotion in early 2013 with a no-contract Simple Choice plan that lets you pay for a phone in installments with a low upfront cost and early upgrades. Other carriers, such as AT&T, have followed suits with similar plans.
This is flawed reasoning. In the end, this will only end up hurting Apple. Maybe not in short-term, but in long-term: definitely.

All these measures have been taken to make it easier to upgrade to new phones. The easier it gets, the more expensive phones get. When you unmask the true pricing of phones, it will go at the cost of iPhones.

Proof: the rest of the world.
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Old Jul 2, 2014, 10:56 AM   #17
IJ Reilly
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Quote:
Originally Posted by Small White Car View Post
Well, yes, that's how the stock market works. Things go up and then they go down. The last year has been a 'down' year for Apple.

Analysts are supposed to speak negatively about a stock in those times. That's their job. And now that it's going back up they're supposed to talk about that too.

No one needs an analyst who always holds the same opinion about a company, as you seem to want.
Your point is right, but for the record, the numbers are off. The last year has been huge for AAPL, up over 50%. The down year (and a half) was between September 2012 and April 2013.
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Old Jul 2, 2014, 10:57 AM   #18
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Quote:
Originally Posted by Small White Car View Post
Well, yes, that's how the stock market works. Things go up and then they go down. The last year has been a 'down' year for Apple.

Analysts are supposed to speak negatively about a stock in those times. That's their job. And now that it's going back up they're supposed to talk about that too.

No one needs an analyst who always holds the same opinion about a company, as you seem to want.
That's the thing, last year has not been more of a "down" year than this year was to be honest. Apple stock does not make any sense. Apple has "yet" to release anything groundbreaking this year. Nobody can guarantee an iWatch and iPhones/iPads are always incremental updates from now on. Actually I think the best product Apple released lately was iPad Air, which was last year.
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Old Jul 2, 2014, 11:01 AM   #19
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This is what is known as a CONTRARIAN INDICATOR. Now that these idiots are saying BUY BUY BUY, this is a good chance for your to sell before earnings.
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Old Jul 2, 2014, 11:04 AM   #20
IJ Reilly
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Originally Posted by Cyborg21 View Post
Sorry but I see same comment before Apple releases a new product. Nobody needed an ultra portable laptop (MacBook Air), nobody needed a touchscreen smartphone with tons of apps (iPhone), nobody needed a very small music player (iPod), nobody needed an all-in-one computer (iMac), nobody needed a tablet (iPad). See? I saw a lot of people saying that iPad will be a failure because there are netbooks, or iPhone will fail because physical keyboard is very important etc. Just wait for a couple years, I bet you will get an iWatch or clone iWatch which is made by S*cough* or G*cough* companies.
It isn't worth wasting a lot of words on people like this. They have opinions, but opinions are free. Putting opinions to work requires actual convictions. If they don't believe in what they are saying, then why should we?

----------

Quote:
Originally Posted by akm3 View Post
This is what is known as a CONTRARIAN INDICATOR. Now that these idiots are saying BUY BUY BUY, this is a good chance for your to sell before earnings.
Oh, so you've outsmarted the markets? Good luck with that.
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Old Jul 2, 2014, 11:04 AM   #21
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I'm not so sure I buy these predictions about a mass of upgrades as customers become eligible. AT&T in particular is in the midst of a mass exodus of moving customers into their new plans where people who bought phones at a subsidized price have switch to the new mobile share plans to save a bunch of money. What is not made clear is that when they wish to upgrade, they will have to either buy their new phones outright or add $35/month per phone to upgrade. That's going to catch a lot of people by surprise, especially families with multiple phones who will see their savings evaporate as they add $70-150 or more to their monthly bill (doubling their current cost). I think this will have the long term effect of forcing people to keep their phones longer, and driving more of the overall profit towards AT&T.
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Old Jul 2, 2014, 11:05 AM   #22
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Originally Posted by GeneralChang View Post
I have a plugin on my browser that replaces “analyst” with “medicine man.” It makes articles like this really quite entertaining.
If you are serious, could you link to this plugin?
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Old Jul 2, 2014, 11:09 AM   #23
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Originally Posted by IJ Reilly View Post
Your point is right, but for the record, the numbers are off. The last year has been huge for AAPL, up over 50%. The down year (and a half) was between September 2012 and April 2013.
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Originally Posted by iBug2 View Post
That's the thing, last year has not been more of a "down" year than this year was to be honest. Apple stock does not make any sense. Apple has "yet" to release anything groundbreaking this year. Nobody can guarantee an iWatch and iPhones/iPads are always incremental updates from now on. Actually I think the best product Apple released lately was iPad Air, which was last year.
$60 a year ago to $93 today. Sure seems like last year was more 'down.'

Oh, wait. Did you think I was talking about the company?

Ha ha. Yeah, that's not what analysts care about. Any discussion of stock analysts is purely about the stock price which, as you've noted, has little to do with how well the company is doing. It's how I talk in threads like these. Why bother talking about things that don't matter to the subjects of the original story? They sure don't care.
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Old Jul 2, 2014, 11:13 AM   #24
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Originally Posted by akm3 View Post
This is what is known as a CONTRARIAN INDICATOR. Now that these idiots are saying BUY BUY BUY, this is a good chance for your to sell before earnings.
I'm sure no one takes investing tips off a public forum, but even so, don't sell APPL now. This is a terrible time to sell. Buy or hold.
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Old Jul 2, 2014, 11:15 AM   #25
IJ Reilly
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Originally Posted by Small White Car View Post
$60 a year ago to $93 today. Sure seems like last year was more 'down.'

Oh, wait. Did you think I was talking about the company?

Ha ha. Yeah, that's not what analysts care about. Any discussion of stock analysts is purely about the stock price which, as you've noted, has little to do with how well the company is doing. It's how I talk in threads like these. Why bother talking about things that don't matter to the subjects of the original story? They sure don't care.
Ya lost me there.

Analysts do talk about more than stock price. That number is a function of their forecasts for sales, revenues and earnings.
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