Apple is back above $225: Look who’s underwater now

The first time Apple broke $225, on August 30, all but eight of these analysts were in negative territory.

Between the stock’s rebound and a flood of post-Labor Day upgrades, the balance of bulls and bears has reverted to something closer to the norm.

Below: My full list of Apple price targets, as accurate and up-to-date* as I can make it. Corrections appreciated.

Click to enlarge.

*TipRanks ($) reports that an analyst who shall remain nameless (long story) has moved to a new a Street-high price target of $300.

8 Comments

    • Michael Thompson said:
      Please provide evidence that Toni Sacconaghi has or ever had common sense. For 4 years in a row, he has specifically stated that Apple’s best days are behind it.

      Apple’s EPS will set a massive record in FY 2019. Toni has been repeatedly proven wrong. In any other field of endeavor, Toni would have lost his job for poor performance. A baseball player cannot hit under .200 for four consecutive years and retain his job.

      0
      September 29, 2018
  1. Robert Paul Leitao said:
    At Friday’s closing price ($225.74), Apple is trading at about 16.47 times the Street’s current consensus eps estimate for the fiscal year that begins tomorrow. I consider the Street’s current FY2019 consensus eps estimate of $13.71 to be conservative and I expect estimates, on average, to move closer to $15 per share over the next six months.

    In my view, at Friday’s closing price the shares are trading in an attractive range on a long-term basis for repurchases (and acquisition by investors) and I expect another increase in the already massive share repurchase program to be announced in April along with a dividend increase.

    At 20 times the current conservative consensus eps estimate for FY2019 the share price would be in the range of $275 per share. iPhone unit sales growth in the mid to high single-digit range, even with the risk of some moderation in average selling prices due in part to forex challenges and the expected high volume sales of the iPhone XR, along with strong growth in Services and Other Products revenue, will deliver aggregate revenue growth above the Street’s current 6.30% estimate.

    I certainly don’t fault analysts with price targets currently in the $250 to $260 per share range. There are risk factors that accompany the company’s opportunities for growth. However, I do question the work of analysts with recently-minted price targets at or below Friday’s closing price. In my view, these analysts either put too much emphasis on iPhone unit sales alone or are discounting the rates of growth and premium margins in Services and Other Products. The conventional wisdom that Apple’s device lines will fall victim to commoditization has simply not proven true.

    I expect price targets, in general, to continue to move higher over the next six months as Apple positions itself for record aggregate revenue, record net income, record earnings per share along with record iPhone unit sales, record revenue in the Services and Other Products segments in FY2019 and continued growth in the global base of active device owners.

    1
    September 29, 2018

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