Loop Capital has raised its Apple price target

Analyst Ananda Baruah likes the momentum of Apple’s subscription growth.

From MarketWatch:

Loop Capital analyst Ananda Baruah raised his price target on shares of Apple Inc. to $210 from $195 on Friday, writing that the stock seems well positioned for the rest of the year. “Specifically, we believe the combination of ongoing Services momentum (which we believe to be structural) and the introduction of a lower-ASP [average-selling-price] LCD-based iPhone X (upon the September launch of iPhone X Version 2, or Xv2) can provide tailwind to both revenue and iPhone X units that wasn’t present for the iPhone Xv1 launch,” Baruah wrote. He is upbeat about Apple’s ability to retain a favorable mix of high-priced phones in the second half of the calendar year.

My take: I’ve asked Baruah for the note. What we have here is all stuff we’ve heard before. Benzinga highlighted this detail:

Subscription growth remains strong and was up 100 million year-over-year in the June quarter to 270 million, according to Loop.

Apple hasn’t actually shared its June quarter subscription numbers yet. A 30 million pop from the 240 million Apple reported for March would be impressive, if true.

13 Comments

  1. John Blackburn said:

    No mention I can see of the methodology used to discern that 270 million figure, so perhaps appropriate not to mention what should be done with it.

    0
    July 7, 2018
  2. Robert Paul Leitao said:

    While the increase in the price target to $210 is justified by the company’s strong fundamentals and the aggressive share repurchase program, I’m just curious as to why speculation about unannounced new handsets and uncorroborated growth in subscriber numbers appear to be the basis for the price target increase.

    In my view, the report from MarketWatch and the report from Benzinga are not well-written. I’m assuming there’s more substantial content in the analyst’s notes in support of the price target increase that has yet to become available.

    0
    July 7, 2018

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