Market Overview

Canaccord Raises Apple Price Target Ahead Of iPhone Event

Canaccord Raises Apple Price Target Ahead Of iPhone Event
Related AAPL
Evercore: Spotify's Risk-Reward Profile Makes Bull Thesis 'Difficult' To Justify
Another Day, Another Bank Misses On Earnings: Market Could Be On Defensive
Verizon throws in Apple Music to its top unlimited plans (Seeking Alpha)

Apple, Inc. (NASDAQ: AAPL) investors know September is a big month for the company. And one Wall Street analyst is even more optimistic about the stock headed into this year’s iPhone event.

The Analyst

Canaccord Genuity analyst T Michael Walkley reiterated his Buy rating and raised his price target from $220 to $250.

The Thesis

Walkley's latest checks on iPhone sales reveal the post-iPhone X market is stronger than anticipated. He said iPhone users continue to express high levels of satisfaction, and he predicts Apple will be able to grow its market share of the global premium smartphone market.

“Further, we believe Apple’s ecosystem will contribute to strong ongoing growth for services revenue, and we expect the higher margin services revenue growth to continue outpacing total company growth,” Walkley said in a note.

Many, including Walkley, expect Apple to unveil three new iPhone models at its Sept. 12 event. He estimates the global iPhone user base will eclipse 700 million in 2018 and will continue to drive iPhone upgrade sales and services revenue. Walkley estimates services revenue can grow in the double digits in the long-term, including 25 to 30 percent growth from the App Store. In addition, he said new revenue growth sources, such as streaming video, could help drive margin upside.

Canaccord Genuity raised its 2018 and 2019 EPS estimates from $11.71 and $13.59 to $11.77 and $13.61. The firm also initiated a fiscal 2020 EPS estimate of $15.30.

Price Action

Apple's stock traded around $227.83 Tuesday morning.

Related Links:

This Day In Market History: Steve Jobs Leaves Apple

6 Investing Lessons From Apple's $1 Trillion Climb

Latest Ratings for AAPL

Jan 2019CitigroupMaintainsBuyBuy
Jan 2019NomuraMaintainsNeutralNeutral
Jan 2019Canaccord GenuityMaintainsBuyBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Canaccord Genuity iPhone iPhone XAnalyst Color Price Target Reiteration Analyst Ratings Tech Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Perfect September Storm: 5 Reasons To Be Gloomy About Markets, Bullish On The USD

Mid-Morning Market Update: Markets Open Lower; Conn's Profit Tops Estimates