Apple And Wall Street Analysts: Who's The Best, And Who's The Worst?
Apple Inc. (NASDAQ: AAPL) is one of the world’s hottest stocks. Early investors who held onto Apple have made millions thanks to the stock’s continued success. Over the past year alone Apple stock has increased nearly 50% thanks to the long-awaited release of the iPhone 6/6+ and expanding sales in China. Which analysts made the most cunning and profitable Apple ratings in the past 12 months… and which analysts made the worst?
Best ratings go to…
Anil Doradla of William Blair and Kathryn Huberty of Morgan Stanley tied for making the most profitable Apple rating over the past year. Both analysts rated Apple a Buy on January 27 when shares were at $109.14. Three months later, shares rose to $123.25. Investors who listened to Huberty and Doradla would have made a 22 percent profit in just three months.
Doradla was bullish on Apple because he believed the company would “continue to benefit from the strong iPhone 6 product cycle in its March quarter” and because of strong sales in China. Anil Doradla has rated Apple seven times since June 2012 with an 86 percent success rate when measured over a 3-month horizon.
Huberty reiterated an Overweight rating on Apple with a $133 price pointing to “evidence that C4Q fundamentals will continue into 2015, pushing the stock higher.” Kathryn Huberty has rated Apple 66 times since January 2009 with a 71 percent success rate when measured over a 3-month horizon.
Worst ratings go to…
The worst Apple rating came on December 16, 2014 from Berenberg analyst Adnaan Ahmad when he issued a Sell rating on the stock with a $60 price target. Ahmad believed that hedge funds would soon lose interest in Apple shares. The analyst was concerned that Apple’s “super-cycle” was a “one-off” because there had not been a substantial iPhone innovation for several years. Ahmad continued to note that the Apple Watch was an insignificant novelty and that sales in Asia would soon decrease.
On December 16, Apple was priced at $106.75 a share and three months later (on March 16), it was priced at $124.95 a share. Investors who listened to his rating and sold their Apple shares would have lost -17.5% of their investment.
Ahmad also made the second worst Apple recommendation on January 28 of this year when he reiterated a Sell rating on the stock with a price target of $60. The analyst believed Apple’s iPhone business may eventually lose its charm, noting “2016 could be an absolutely treacherous year for iPhone volumes and Apple’s earnings, given the disproportionate revenue and margin impact of this product.” On the day of his rating, Apple was priced at $115.31. Three months later (on April 28), the stock was priced at $130.56, resulting in a -13.6% loss on the rating.
Adnaan Ahmad has rated Apple seven times since March 2013 with a 29% success rate when measured over a 3-month horizon.
On average, the top analyst consensus for Apple on TipRanks is Moderate Buy.
Latest Ratings for AAPL
|Apr 2017||Morgan Stanley||Maintains||Overweight||Overweight|
|Apr 2017||Credit Suisse||Maintains||Outperform||Outperform|
|Apr 2017||Pacific Crest||Maintains||Overweight|
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