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Oppenheimer Is Bullish On Apple: Here's Why

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Oppenheimer Is Bullish On Apple: Here's Why
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In a recent report, Oppenheimer analysts updated their outlook for Apple Inc. (NASDAQ: AAPL), and reiterated their Outperform rating and $130.00 price target for the stock.

Analysts believe Apple’s fourth quarter numbers will be strong, and see plenty of upside for investors.

Underestimating The iPhone

The iPhone has a long history of beating expectations, and analysts believe the iPhone 6 is no exception. Oppenheimer expects sales of the most recent iPhone will drive Apple’s earnings above consensus expectations for 4Q14 and 1Q15. They predict Apple will announce earnings of $2.61 per share on revenue of $69.5 billion next week.

Revising Models

Oppenheimer’s latest prediction of 27 percent year-over-year iPhone shipment growth for Q4 led analysts to revise their revenue expectations for 2015 and 2016. Analysts now expect $226.7 billion in 2015 revenues on earnings of $8.13 per share. 

Related Link: Why The Apple Watch Can't Replace Luxury Watches

The new revenue estimate represents a 2.6 percent increase over Oppenheimer’s previous revenue projection for the year, and it’s about 6.7 percent above consensus revenue estimates of $212.5 billion.

Lack Of Competition

After attending the CES conference, analysts are convinced the Apple Watch will see little serious competition for the time being. Analysts see a window of exclusivity in the wearable watch space for Apple at the moment, as none of the competition seems close to launching a comparable product.

Spring Launches

Analysts are predicting launches of the Apple Watch and the next generation of iPads by March, and see big things from the company in 2015.

“We believe that the enhanced product portfolio will effectively leverage Apple’s overwhelming ecosystem advantage and help the company to address a wider consumer and enterprise audience," they wrote.

Latest Ratings for AAPL

DateFirmActionFromTo
Aug 2017NomuraMaintainsBuy
Aug 2017BarclaysMaintainsEqual-Weight
Aug 2017Deutsche BankMaintainsHold

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: OppenheimerAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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