Apple's Stock Price Projected to Keep Rising on 'iPhone 8' Optimism

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Mar 6, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    While a 5.8-inch iPhone with an OLED display is likely around six months away from being announced, the stock market is always looking ahead, and several analysts think the smartphone will be a hit among customers.

    Accordingly, over the past month, several financial analysts have raised their price targets for Apple's stock to between $150 and $185, per research notes obtained by MacRumors.

    Citi analyst Jim Suva, for instance, raised his Apple stock price target to $160 today. Likewise, BMO Capital Markets analyst Tim Long rose his target to $160 in late February.

    Apple's stock has already been on an impressive run this year so far, closing at $139.34 on Monday, just cents off its record-breaking high of $139.79 set last week.

    Long in particular said he expects Apple's trio of new iPhone models, presumably arriving this September, to drive the "biggest refresh cycle" since the iPhone 6 in 2014.
    iPhone 6 and iPhone 6 Plus were runaway hits as Apple's first smartphones with screen sizes as large as Samsung's competing Galaxy smartphones, but the iPhone's overall look and feel has gone largely unchanged since those models were introduced three years ago, and iPhone sales declined for the first time ever last year.

    The so-called "iPhone 8," or whatever Apple names its tenth-anniversary iPhone, will likely be something fresh and new, however, which Long expects could drive existing iPhone users to upgrade.

    Long estimated that the number of iPhones in use was around 715 million, including 228 million second-hand devices, as of December 2016. Of the new models, he estimated 31% of the installed base will be 2 years or older at the time of Apple's presumed September launch event.

    This larger than usual base of customers with older iPhone models has led analysts such as Morgan Stanley's Katy Huberty and UBS's Steven Milunovich to expect a "supercycle" of iPhone upgrades through next year.

    Huberty recently raised her price target to $154, up from $150, but with an "overweight" rating. She expects the 5.8-inch iPhone's significant form factor change, and rumored features such as wireless charging, longer battery life, 3D sensors, and more advanced AI software capabilities, to drive the accelerated upgrade cycle.

    Milunovich raised his price target to $151 in late February, up from $138, and he maintained a "buy" rating.

    Huberty and Milunovich are far more conservative than Drexel Hamilton analyst Brian White, who has maintained a $185 price target since last year. "We continue to believe that Apple remains one of the most underappreciated stocks in the world," he said in a research note shared with investors in early February.

    Guggenheim Securities analyst Robert Cihra reportedly raised his price target to $180, up from $150, last week.

    Billionaire investor Warren Buffett of Berkshire Hathaway went on an Apple stock buying spree over the past few months, increasing his position in the iPhone maker to around 133 million shares prior to the company's record-breaking earnings results at the end of January. His holding has likely netted him several billions.

    Article Link: Apple's Stock Price Projected to Keep Rising on 'iPhone 8' Optimism
     
  2. cerote macrumors 6502a

    cerote

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    #2
    I think it may also be this is decent anniversary year for the iPhone. Everyone is hoping Apple can pull some new concepts or design again.
     
  3. IJ Reilly macrumors P6

    IJ Reilly

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    #3
    To decode what's being said here, the current 12-month consensus target price for AAPL is $140. The trend may be towards raising forecasts, but the average of all analysts is at this moment almost precisely the same as the current market price.
     
  4. Pakaku macrumors 68000

    Pakaku

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    You'd be happy too if you invested into a phone line that rarely undersells the previous gen.
     
  5. Radon87000 macrumors 68040

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    #5
    This iPhone is the biggest update since the original iPhone in 2007. Honestly they could have just updated to OLED and left it there as that in itself is a huge upgrade
     
  6. dampfnudel macrumors 68020

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    #6
    I can't wait and to all those who will say we're only getting an iPhone 7s/7s Plus this year because it's an 'S' year, your iPhone 7/7 Plus will still be a great phone even if it looks a little dated. However, if saying that makes you feel better, by all means, go ahead.
     
  7. DakotaGuy macrumors 68040

    DakotaGuy

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    #7
    This is why Apple doesn't care about the Mac business these days. There just isn't money in the PC business anymore. Tim Cook is following the money and the shareholders will be happy.
     
  8. VirtualRain macrumors 603

    VirtualRain

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    #8
    The iPhone 8 probably has nothing to do with Apple's recent stock price. The Dow has set 32 record closing highs since the presidential election. All stocks are on the rise.
     
  9. I7guy macrumors G4

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    #9
    Not really. I'd rather have the kind of functionality updates that Apple is famous for than a new screen technology that isn't mature.
     
  10. Relentless Power macrumors G3

    Relentless Power

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    #10
    So, you're making a sweeping generalization based off a fictitious mock up of an iPhone picture? Even if the author of the article changed the picture, that doesn't change anything regarding what the iphone will ultimately render.
     
  11. IJ Reilly macrumors P6

    IJ Reilly

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    That isn't right either. Since November the S&P 500 is up around 15% while AAPL has risen nearly 30%. It's all about shaking that period of declining earnings. Markets actually care about that stuff.

    And forget the DOW. It's meaningless.
     
  12. Radon87000, Mar 6, 2017
    Last edited: Mar 7, 2017

    Radon87000 macrumors 68040

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    #12
    Too bad Wall street and the customers disagree with you. The phone everyone is looking forward to is the OLED Iphone.

    Ah so once Apple uses OLED it becomes a mature technology?
    --- Post Merged, Mar 6, 2017 ---
    The iPhone 7 will look like a behemoth from the 90s compared to this bezelless curved edge iPhone
     
  13. Bart Kela macrumors 6502

    Bart Kela

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    #13
    You know that this is a rumor site and most Apple rumors do not see the light of day as a shipping product, yes?

    Or did you fail to recognize that?
     
  14. MH01 macrumors G4

    MH01

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    #14
    Identical design 4th year running.....I doubt the 7s/7s plus owners will be too cocky. It's like owning mac hardware :p sure internal bumps .... though nothing groundbreaking
    --- Post Merged, Mar 6, 2017 ---
    Camera and cpu spec bumps ? Can I ask what you are referring to in relation to famous functionality updates, 2015/2016 were the worst keynotes in history in my opinion.
     
  15. BvizioN macrumors 68040

    BvizioN

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    I think it would be kind of stupid and suicidal not to!
     
  16. Avieshek macrumors 6502

    Avieshek

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    #16
    Maybe, after people receive their iPhone 8 ;¬>
     
  17. darksithpro macrumors regular

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    #17
    Us, iPhone users are like: OMFG OLED!

    Android users be like: Welcome to 2012, n00bs.
     
  18. apolloa macrumors G3

    apolloa

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    #18
    I can see Cook having another Apple Watch moment when he announces the price... or when Schiller does..

    and so the iPhone 8 starts with 32GB RAM available in all these countries, the 32GB is $1199 and the 128GB is $1299....

    Then comes that awkward silence moment when the audience goes quiet just like the $12000 Apple Watch announcement.

    Of course stocks will rise anyway, that's Cooks aim and what he does.
     
  19. canadianreader macrumors regular

    canadianreader

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    #19
    Half a trillion dollars company unable and unwilling to update its mac mini and mac pro for years.
     
  20. apolloa macrumors G3

    apolloa

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    Yeap, but it does make the iPhone for peanuts and then charge a fortune for it resulting in most if the mobile phone market profits going to Apple. Hence why the shares never really drop, you saw them slightly drop in relation to dropped iPhone sales, although at least they've updated the MacBook Pro, well with last gens processors anyway..
     
  21. Michaelgtrusa macrumors 604

    Michaelgtrusa

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    #21
    Stock is not what matters. People and nations matter.
     
  22. apolloa macrumors G3

    apolloa

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    I want to know, if they do charge over a grand for it, as rumours imply, and they start the base iPhone 8 with 32GB storage, again as rumours have implied, will Apple stick in the cheaper and much slower 32GB storage just like they do with the iPhone 7?
    It'll certainly help those massive profit margins and thus share price, but be a shame for all those believing they have a high spec 32GB iPhone for their grand plus..
     
  23. Radon87000 macrumors 68040

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    They will. They just have to call it iPhone "Pro" to justify it
     
  24. rudychidiac macrumors 6502

    rudychidiac

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    #24
    Can't wait to be extremely disappointed <3
     
  25. JGRE macrumors 6502a

    JGRE

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    #25
    While Samsung is paying ******** on commercials about quality to get there new phone accepted in the market (after the Note disaster), Apple gets all it PR for free from 'analyst'. Stock rising pure on speculations only. Timmy must be having his best time ever.
     

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