UPDATE: Jefferies Initiates Coverage On Apple Inc.

Loading...
Loading...

Jefferies initiated coverage on of Apple Inc. AAPL with a Hold rating and $110 price target.

A team of analysts led by Sundeep Bajikar felt that growth in the Apple ecosystem is critical to future earnings as hardware sales slow and technological limitations challenge hardware differentiation.

Apple’s existing monetization of software and services along with the new Apple Pay platform should help drive earnings from the Apple ecosystem.

According to Jefferies, “Apple’s premium product strategy driven by hardware has served it well, but 1) overall device growth has both slowed and is increasingly coming from 2x-lower price points, and 2) hardware differentiation is challenged by Moore Stress. Our ecosystem analysis suggests Apple has an opportunity to scale software/ services monetization across a larger device installed base like Google, but such expansion would come at lower hardware prices.”

The forecasted target scenario sees FY 2015 EPS at $7.69 with a Target Multiple at 14x.

Apple Inc. opened at $101.10 on Tuesday, up 0.99 percent.

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsJefferiesSundeep Bajikar
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...