'Planet Apple' Makes Apple Worth $195/Share

In a report published Monday, Cantor Fitzgerald analyst Brian J. White maintained a Buy rating on Apple Inc. AAPL, with a price target of $195, ahead of the company's annual Worldwide Developers Conference (WWDC). In the rpeort Cantor Fitzgerald noted, "WWDC is primarily focused on software and the associated services that we believe has supported the success of Apple's portfolio of hardware devices over the years, creating the most powerful digital ecosystem in the mobile device world, in our view." Analyst Brian J. White said that Apple's digital ecosystem, or "Planet Apple," is often underappreciated, "operating in the shadow" of the company's mobile device portfolio. However, the company's digital matrix is "rapidly expanding its reach beyond traditional mobile devices and into wearable technology, the smart home, the connected automobile and elsewhere." White believes that Apple's key differentiator is its "ever-expanding and seamless" digital matrix, which can be expected to "leave more competitors behind" in the coming years. Apple Music may be introduced at the WWDC. This service leverages the $3 billion acquisition of Beats and Apple's long history in the digital music business. According to The Wall Street Journal, Apple may charge $10 per month for its new music streaming service. "We believe this potential new service can enhance the company's digital ecosystem, rather than move Apple's financial needle," the report added. The new Apple TV streaming service may not be announced due to stalled negotiations with networks. Apple may unveil iOS 9 and its updated OS X for the Mac. "Also, we anticipate an update on Apple Watch with a roadmap toward the development of native applications, along with updates on Apple Pay, HomeKit, HealthKit and CarPlay," White mentioned.