From a note to clients snagged by MarketWatch:
Tim Cook’s company is under-appreciated says our call of the day from Jefferies analysts.
Equity analysts Kyle McNealy and George Notter have just come out with a recommendation for investors to buy Apple, and a target for shares to rise to $260. They say Wall Street fails to appreciate how much the company stands to benefit from fifth generation cellular network technology, which basically promises faster data connection for consumers.
“In our view, current expectations for Apple’s first 5G iPhone lineup are too low. They underestimate Apple’s competitive position for 5G devices,” they said…
They list a few reasons for their optimism: Most Apple customers will need a 5G upgraded device; the industry marketing push behind 5G will be huge with more product differentiation versus prior cycles; world-wide smartphone penetration will get higher and Apple has also expanded its own mid-range offerings.
To Buy rating from Neutral. Hikes price target to $260 from $210.
My take: Lots of changes at Jefferies. As near as I can tell, McNealy and Notter have taken over from Timothy O’Shea, who took over for Peter Misek a few years ago and left three months ago to watch the video game industry for Code Advisors. New analysts, new attitude.
I’ve asked for the note.
UPDATE: Got the note. See Why Jefferies flipped its Apple bit from Neutral to Buy
Below: Jefferies’ Chart 16