Early iPhone 6s Checks Make Apple Worth $160, JMP Analysts Predict

• Apple, Inc. AAPL has seen a 14.38 percent increase in its share price over the last one year.
• Alex Gauna of JMP Securities has reiterated a Market Perform rating on the company, while raising the price target from $150 to $160.
• Checks suggest that there could be upside demand for the new iPhone 6s, with higher demand for the more expensive iPhone 6s Plus and 64/128 GB storage capacity models.

According to the JMP report, the demand trends suggest that there is potential for Apple to reach or exceed iPhone sales of 80 million in the December quarter, as well as for the company “to see both ASPs and gross margins expand in conjunction with the new models, and for it to extend growth momentum into 2016 as it upgrades existing iOS users and captures further global market share.”

Gauna believes that there are multiple reasons to invest in Apple, since investors would benefit due to increasing innovation for products such as the iPhone Plus, iPad, Apple Watch, Apple TV, Apple Pay, Apple Music and more, since the company is not “leaving any openings for competitors to close ground on its leadership.”

In addition, the launch of the 12-month iPhone upgrade program is expected to drive refresh rates and “free up refurbished supply to enhance market share gains in emerging markets.” Also, the arrival of 3D NAND, OLED display technology and the A9x processor is likely to drive “compelling upgrade cycles and margin expansion opportunities in 2016.”

Guana also believes that investor concern regarding tough iPhone 6 comps are overdone and that the company would sustain growth by “capitalizing on markets that are far from saturated.”

The FY16 non-GAAP EPS estimate has been raised from $10.00 to $10.50.