Raymond James upgrades Apple, sets $250 price target

Analyst Chris Caso thinks it may be time to buy ahead of this year’s “weak” iPhone cycle.

CNBC got the note:

Raymond James on Thursday upgraded Apple shares and said that while its call may be premature it has “increased conviction in the impact of a 5G iPhone product cycle in 2020.”

The firm upgraded Apple to “outperform” from “market perform,” and established a price target of $250. Raymond James also said that Apple’s settlement with Qualcomm was a game changer, as it will allow Apple to move ahead using Qualcomm’s modems in the 2020 iPhone.

“Our call may well be early – we expect this year’s iPhone cycle to be the weakest in years, and today may not be the right time to buy ahead of that weakness, ” Raymond James analyst Chris Caso said in a note.

“But since the near-term market moves are being driven by macro conditions as much as fundamentals, we’ve decided to upgrade now and let our clients decide the best time to execute on our idea,” he said.

Raises rating to Outperform from Market Perform. Sets price target at $250.

My take: Gangster move. After covering Apple at Raymond James for more than two years, Caso chose today to publish his first AAPL price target for the firm—a market-high $250.

4 Comments

  1. Gregg Thurman said:

    A true 1 year price target, not a 90 day wonder sold as a 1 year.

    1
    July 18, 2019
  2. Robert Paul Leitao said:

    In my view, Apple is likely to move significantly higher in anticipation of a massive 5G iPhone upgrade cycle. I expect valuation models to reflect the anticipated growth in revenue and net income 6 to 9 months ahead of the planned release of the new models in the fall of 2020 (FQ1 2021). In other words, Apple’s share price will move higher well before the new handsets are released.

    Apple trades not so much on the company’s trailing revenue and earnings performance. It’s valued mostly on anticipated revenue and net income with anticipated net income amplified by the beneficial impact of the share repurchase program on the company’s EPS performance. The share repurchase program has its greatest impact on the share price during periods of net income growth and anticipated net income growth.

    While a $250 price target may seem high at this time, it might be seen only in the rear view mirror 12 months from now.

    4
    July 19, 2019
  3. Gregg Thurman said:

    “I expect valuation models to reflect the anticipated growth [decline] in revenue and net income 6 to 9 months ahead of….”

    Twas ever thus. WS always makes its purchase/sell decisions ahead of retail accounts.

    Nice post Robert

    0
    July 19, 2019
  4. David Emery said:

    Contrast to Goldman Sachs, raising their target to $187 ($17 below the $204.81 when I checked early this afternoon.) Certainly there has been some significant Apple dives over the last year or so, but does Goldman think it’s heading down 8% again?

    0
    July 19, 2019

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