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Galaxy Note 7 News Has Apple Shares On Fire Again

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Galaxy Note 7 News Has Apple Shares On Fire Again
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Apple Inc. (NASDAQ: AAPL) is looking like a hot stock again, with Samsung Electronics (OTC: SSNLF) dealing with significant backlash after officially halting production and sales of its Galaxy Note 7 smartphone.

Samsung's stock has dropped over 15 percent in the past five days. Apple remains Drexel Hamilton's top pick for the second half of 2016.

Related Link: iPhone Lovers Rejoice: Samsung Will No Longer Manufacture The Galaxy Note 7

"Our view that the sales, profit and iPhone cycle have bottomed, while valuation remains depressed and we expect the iPhone 7 cycle will return the iPhone franchise to growth," said Drexel Hamilton.

Due to the Samsung fallout, analyst Brian White believes Apple has the opportunity to pick up "at least 8 million incremental units in CY:16" and that this news could permanently damage the Samsung brand in the smartphone market.

It also gives Alphabet Inc (NASDAQ: GOOG) a good opportunity to break into the No. 2 spot in the smartphone market, with the upcoming release of its Pixel Smartphone.

Drexel Hamilton has a Buy rating on Apple with a $185 price target, representing 58 percent upside from current levels.

The stock was trading up about 1 percent at $117.23 today, a 2016 high.

Latest Ratings for AAPL

DateFirmActionFromTo
Oct 2016Goldman SachsMaintainsBuy
Oct 2016Credit SuisseMaintainsOutperform
Oct 2016PiperJaffrayMaintainsOverweight

View More Analyst Ratings for AAPL
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Posted-In: Brian White Drexel Hamilton Glaxay Note 7 iPhone SamsungAnalyst Color Analyst Ratings Tech Best of Benzinga

 

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