Analysts Eyeing Record Highs for Apple's Stock Price, Rushing to Raise Price Targets

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jul 2, 2014.

  1. macrumors bot

    MacRumors

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    [​IMG]


    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.

    [​IMG]
    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.
    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
     
  2. macrumors 65816

    JaySoul

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    #2
    If you're going to buy, buy now.
     
  3. macrumors 6502

    512ke

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    #3
    Most analysts = iSheep
     
  4. macrumors regular

    medazinol

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    Location:
    Toronto
    #4
    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.
     
  5. macrumors P6

    IJ Reilly

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    #5
    I try not to do that. They will have you arrested.
     
  6. macrumors regular

    Joined:
    May 15, 2013
    #6
    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
     
  7. macrumors 6502

    Eadfrith

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    #7
    Aren't these the same people who were trashing Apple not that long ago? :rolleyes:
     
  8. macrumors P6

    IJ Reilly

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    #8
    So you are shorting the stock, right?
     
  9. macrumors 6502a

    Joined:
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    #9
    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.
     
  10. macrumors 6502a

    Joined:
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    #10
    I have a plugin on my browser that replaces “analyst” with “medicine man.” It makes articles like this really quite entertaining.
     
  11. macrumors G4

    Small White Car

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    #11
    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.
     
  12. macrumors 6502a

    Joined:
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    UK
    #12
    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.
     
  13. macrumors newbie

    Joined:
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    Los Angeles area
    #13
    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
     
  14. macrumors 6502a

    Joined:
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    UK
    #14
    Apple has changed strategy in a number of areas, not least in re-purchasing stock. I think the hiring of Ahrendts is very significant.
     
  15. macrumors 6502

    Cyborg21

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    #15
    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.
     
  16. macrumors 65816

    Joined:
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    #16
    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.
     
  17. macrumors P6

    IJ Reilly

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    #17
    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.
     
  18. macrumors 68040

    Joined:
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    #18
    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.
     
  19. macrumors 68020

    Joined:
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    #19
    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.
     
  20. macrumors P6

    IJ Reilly

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    #20
    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?

    ----------

    Oh, so you've outsmarted the markets? Good luck with that.
     
  21. macrumors 68040

    zhenya

    Joined:
    Jan 6, 2005
    #21
    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.
     
  22. macrumors 6502a

    PowerBook-G5

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    #22
    If you are serious, could you link to this plugin?
     
  23. macrumors G4

    Small White Car

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    Washington DC
    #23
    $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.
     
  24. macrumors 6502

    512ke

    Joined:
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    #24
    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.
     
  25. macrumors P6

    IJ Reilly

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    #25
    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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