Raymond James catapults Apple target to Street-high $280 — updated with video

Analyst Chris Caso, encouraged by iPhone sales, gets out in front of the pack.

From TheFly:

Apple price target raised to $280 from $250 at Raymond James Raymond James analyst Chris Caso raised his price target for Apple to $280 from $250 and reiterated an Outperform rating ahead of the company’s September quarter results. In a research note to investors, Caso says his longer thesis regarding optimism for the 2020/21 5G cycle remains unchanged, and adds that more stable near term conditions coupled with the launch of a new SE model in early 2020 creates a bridge to the 5G, which he feels will continue to squeeze the stock higher.

From MarketWatch:

Raymond James analyst Chris Caso became more bullish on Apple Inc. shares AAPL, +1.87% on Monday, boosting his target price to $280 from $250 while maintaining an outperform rating. Caso sees “more stable near-term conditions” for Apple, including encouraging iPhone 11 channel checks. His new target is the highest listed on FactSet. Amid reports that the company plans to launch a new low-end SE model early next year, Caso argues that Apple will be able to “create a bridge to the 5G cycle,” which will “continue to squeeze shares higher,” in his view. “We increasingly view the 5G opportunity as a two-year cycle, with 5G representing an estimated 40% of mix in the fall 2020 cycle, growing to the vast majority in the 2021 cycle,” Caso wrote of his longer-term expectations.

CNBC Pro has a bit more detail.

Maintains Outperform rating and raises price target to $280 from $250. 

My take: Caso slipped his note in just before the stock popped. I’ve asked to see it.

UPDATE: The man himself, interviewed by Jon Fortt on CNBC. Cue the video…

Why Raymond James upped its price target for Apple to $280 from CNBC.

13 Comments

  1. Gregg Thurman said:

    There are now 6 PTs, I show as April 2020 targets, that exceed $250, with an average target of $266.

    Of the 36 firms I track 13 have PTs that are on average 165 days old. Only one of the 13 is from a chronically wrong analyst. I expect target upgrades from these immediately after Apple’s earnings report.

    0
    October 21, 2019
  2. Gregg Thurman said:

    Something investors and WS alike may be missing is that the US$ has declined in value almost 300 basis points in the last 20 days.

    If this trend continues FX could be an unexpected tailwind going into the December quarter.

    5
    October 21, 2019
  3. Michael Thompson said:

    This day is just another day of affirmation for long-term Apple shareholders. The only thing to do with Apple stock is accumulate it during the nasty corrections and hold it for the long-term. No matter how many lies are told about us, there’s no company close and Microsoft is essentially an ant compared to Apple.

    When it requires the addition of the net profit of the second and third most profitable companies to surpass our gargantuan and GROWING profitability, you should know who the Boss is. No amount of lies changes who the Boss is.

    Apple’s income statement, balance sheet and cash flow statement prove quantitatively and UNDENIABLY who the Boss of the Dow and S&P is, was and will be. The last nerd picked for the kick ball team Sacconaghi can’t change that fact.

    “In the short run, the market is a voting machine, but in the long run it is weighing machine”. Apple shareholders, we will all be much richer over time.

    3
    October 21, 2019
  4. Fred Stein said:

    Good (AAPL = $240) morning.

    0
    October 21, 2019
  5. John Konopka said:

    I wonder what the trigger was to cause the rise in AAPL today? I had expected it to stay flat till the earnings report.

    0
    October 21, 2019
    • Gregg Thurman said:

      Ongoing recognition that fears about Apple’s prospects are overblown.

      But if you think this rally is something wait until the institutions get affirmation from Apple’s results that those fears are overblown. Volume for the last week suggest this rally is being driven by retail accounts. Volume following earnings is the institutions getting on(or off) the good ship lollipop.

      1
      October 21, 2019
  6. Aaron Belich said:

    Ugh, Mr. Chris Caso was doing fine in his responses until pushed on 5G. No one has a use that warrants it’s immediate rollout and consumption by the masses.

    No one should be pushing Apple to do 5G until the answer isn’t “Uhhhh….video games!! Yeah, that’s it!!”

    What pushed for the adoption of 4G!? Streaming and photo sharing… Netflix and Facebook. High speed data transfer that was necessary to make those platforms functional outside of the home / office. 5G can’t compete with existing services that are still good enough. It’s like the transition and acceptance of higher TV resolution formats. 240-480.. big jump to 720/1080!! But to 4K!? Ehhh 1080P still looks pretty damn good, unless the source and display are top notch (special conditions — for now at least).

    0
    October 21, 2019
    • David Drinkwater said:

      I’m surprised* Caso didn’t double-down on the vehicle segment (he did mention it early on). That’s an obvious winner.

      *Did some random surfing today, because I’m off for the day. I’m grateful to full time employment for keeping me away from the Internet nowadays. So much of what I saw was total dreck. Not just mediocre content, but also a total disability to edit for orthography. Maybe poor internet content shouldn’t surprise me anymore.

      0
      October 21, 2019
  7. Michael Thompson said:

    Interestingly, Deutsche Bank was a buyer of 2.6 million shares this past quarter according to it’s recent 13F filing. I’ve watched DB sell Apple shares for awhile they previously had one of the paid liar Apple is doomed analysts.

    The biggest joke is that they say that the brains are on Wall Street. Is that why Apple has a 6o% institutional ownership? What hedge fund or other fund could outperform this year WITHOUT Apple’s 53%+ return.

    Warren Buffett can now please explain to me why he kept $120 billion on the sidelines when Apple fell to 142 ($650+ billion valuation).

    He could have doubled his Apple position for a measly $35.358 billion. Wouldn’t BRK shareholders (2% return YTD) have been much better off if he did that no-brainer move?

    0
    October 21, 2019

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