Apple: 17 Buys, 3 Holds, 1 Sell

A snapshot of Wall Street sentiment three days after the iPhone 7 event.

The graphic attached below comes from TipRanks, which tracks Apple analysts and ranks them according to their ratings success and investor returns.

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BGC analyst Colin Gillis, with his “sell” rating and street-low $85 price target, is clearly an outlier.

Gillis was so confident that the new phone would be “treated with wide-spread ambivalence,” that he sent clients his bearish verdict on the new phone before it was unveiled. He prefaced his note, as usual, with a haiku:

The iPhone 7,
will not return the product,
to annual growth.

There aren’t many who would argue with that. But the analysts telling clients to buy Apple are, for the most part, looking ahead to 2017.

See Apple’s iPhone 7 event: What the analysts are saying.

21 Comments

  1. Randy Kolb said:

    How can Apple be a sell when their largest competitor has an exploding phone that can’t even be used on an airplane? It’s crazy. Even if the market was not down, Apple still would have been down on Friday. Huge disconnect between reality and what the news media pushes each day.

    2
    September 10, 2016
  2. Ken Cheng said:

    “treated with wide-spread ambivalence,” is how most refer to Colin Gillis’ research notes.

    0
    September 10, 2016
  3. Robert Paul Leitao said:

    The iPhone is one component and albeit a major component of Apple’s product and services paradigm. This week the company announced a compelling update to its iPhone product line. However, the company’s future growth is contingent on more than the iPhone. It’s contingent on the company’s ability to attract new customers to its expanding eco-system of devices, apps, content and services. The company’s future growth prospects will be revealed over time, not exclusively through its annual iPhone update announcement.

    Each of the analysts listed uses a unique valuation model. It’s to be expected among a group of more than 20 Wall Street analysts there will be at least one outlier to the downside. In my view, to move the share price significant higher price targets will need to rise. Price target revisions will be driven by data more than sentiment.

    Only five months ago management began a new narrative on Services revenue and expanded on that narrative with analysis of “Installed Base Related Purchases” in late July. This narrative will take time to inculcate and the corresponding data will take time to be revealed.

    Meanwhile, management is continuing with a massive share repurchase program which removes tens of millions of shares from the market each quarter at what may soon prove to be highly discounted prices.

    1
    September 10, 2016
  4. Fred Stein said:

    The analysts are following sentiment as expressed in the stock price.
    In 6 weeks, Apple will provide guidance for Q1 FY’17, which will likely beat current analysts expectations based on iPhone 7 pre-orders. Soon after, the analysts will raise their targets. Note, several Jet Black models delivery dates are in November.

    0
    September 10, 2016

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