Market Overview

KeyBanc: What To Expect From Apple's WWDC Presentation

Share:
KeyBanc: What To Expect From Apple's WWDC Presentation

Apple Inc. (NASDAQ: AAPL) will host its Worldwide Developers Conference in San Jose, California June 4, but investors hoping for a game-changing product or service to emphasize the bullish case for owning the stock may be disappointed, according to KeyBanc Capital Markets. 

The Analyst

KeyBanc's Andy Hargreaves maintains a Sector Weight rating on Apple's stock with an unchanged $175 price target.

The Thesis

Apple continues to transition from focusing on growing its business through expanding total users toward one where it can better monetize existing users, Hargreaves said in a research report. (See the analyst's track record here.) 

The overall focus of Apple's event should be on this transition as management details how it will make services and ancillary products more attractive, the analyst said. 

Here's a summary of what Hargreaves said investors can expect from the event:

Business chat was introduced at WWDC 2017 and can be expanded to include iMessage and Apple Pay.

  • Sleep tracking features could be integrated with the Apple Watch OS5.
  • New capabilities, including multiperson interaction, could be introduced to the ARKit.
  • Apple's acquisition of Texture could signal greater ambitions in magazine distribution and bundling.
  • A video service is unlikely to be introduced, as a 2019 launch is more likely.
  • iPhone SE2 could be updated but is unlikely to warrant a material change to iPhone sales estimates.
  • Hardware updates could be introduced, including a potential entry-level MacBook Air.
  • A new Mac Pro has been hinted at and could be introduced, but it will remain a "relatively low-volume" product.

Price Action

Apple shares were down 0.44 percent at the time of publication Thursday.

Related Links:

Gene Munster: Apple's June 4 WWDC 'Vastly More Important' Than September Announcements

Gene Munster: Service At The Core Of Apple

Apple CEO Tim Cook at the 2017 WWDC. Courtesy photo. 

Latest Ratings for AAPL

DateFirmActionFromTo
Aug 2019Initiates Coverage OnEqual-Weight
Jul 2019MaintainsHold
Jul 2019MaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Andy Hargreaves Apple WWDCAnalyst Color News Price Target Reiteration Events Analyst Ratings Best of Benzinga

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
NKEGuggenheimMaintains100.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Morgan Stanley Upgrades Corning, Projects Multiple Earnings Growth Drivers

Evercore Sees New Value In GM Cruise, Upgrades On SoftBank Investment