Reports: Guggenheim raised Apple target to $180

Seeking Alpha Breaking News and StreetInsider and have the note.

I haven’t got my hands on his report yet, but two usually reliable sources say Guggenheim analyst Robert Cihra on Tuesday raised his Apple price to $180.

StreetInsider has this excerpt:

Key drivers are our expectation for both iPhone unit growth and ASP increases to reaccelerate over the next 2 years (compounding leverage), but also the limited supply of new OLED displays to extend the cycle’s timeline over 2-3 years. Adding OLED to just a new higher-priced flagship iPhone X this year then buys Apple another 1-2 years of follow-on cycling as it migrates OLED into lower end models. And 3D sensing technology opens up a whole new potential vector of differentiation and hardware+software innovation. (emphasis theirs)

Reiterate Buy, raise price target to $180 from $150. 

Coming after Warren Buffett’s doubling down and a stampede of recent price hikes (see hereherehere, here, here and here), this could increase buying pressure on the stock.

CORRECTION: An earlier version of the story had the wrong bank in the headline. Guggenheim is correct. Thanks to reader Gregg Thurman for catching that.

5 Comments

  1. Ken Cheng said:
    Uh-oh, we’re getting close to the $1T valuation price targets again. A $180 price would put Apple at $946B, though likely lower as Apple retires more shares.

    0
    February 28, 2017
  2. Gregg Thurman said:
    Your headline is grossly incorrect.

    0
    February 28, 2017
  3. Gregg Thurman said:
    Based on my expectations for next gen iPhones my January price target is presently $170. The difference between Guggenheim’s target, and mine, is the multiple used to arrive at our respective targets. My multiple is 18.6, Guggenheim’s is 20.

    If repatriation happens before the end of the current fiscal year my January target increases to $210.

    There are many solid fundamental reasons to like AAPL during calendar 2018, among our product enhancements, new products/categories, improving world economy (and by extension improved FX rates) and the long delayed restructuring of US corporate tax law.

    0
    February 28, 2017

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