UPDATE: Jefferies Initiates Coverage On Apple Inc.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Jefferies initiated coverage on of Apple Inc. (NASDAQ: 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.

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

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.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsJefferiesSundeep Bajikar