Jeffries hikes Apple target to near-Street high $285

Analyst Kyle McNealy expects a “strong positive bias” for December guidance.

From a note to clients snagged by TheFly:

Jefferies analyst Kyle McNealy raised his price target for Apple to $285 from $260 while keeping a Buy rating on the shares. The stock closed Friday at $246.58. McNealy’s analysis of foot traffic to retail stores in the U.S. and web traffic to online stores globally shows that the iPhone 11 launch is exceeding “conservative” Street expectations. Consensus expects a year-over-year decline in fiscal Q4 iPhone units, says McNealy, whose analysis shows “solid growth. The analyst maintains his estimates but expects a “strong positive bias” for Apple’s September results and December guidance. His checks show that stores had a 37% increase in aggregate traffic on iPhone 11 launch day versus a 32% increase for the iPhone XS launch last year. Customer interest on launch day is a strong early indicator for how demand will track for the remainder of the annual product cycle, McNealy tells investors in a research note.

Maintains Buy rating, raises price target to $285 from $260.

My take: Only Morgan Stanley’s $289 is higher. I’ve asked for the note.

4 Comments

  1. Gregg Thurman said:

    December quarter Guidance: $88.0 Billion – $91.0 Billion

    Actual results (e): $92.0 Billion.

    1
    October 28, 2019
    • Dan Scropos said:

      I think the guidance will be stronger. $90-$94 or $91-$95.

      1
      October 28, 2019
  2. Fred Stein said:

    Reverse capitulation.

    Investor and analysts have given up on their false negatives. Please grant poetic license.

    1
    October 29, 2019
    • Mark Visnic said:

      Capitulation. Imagine that. And only one year after they decried Apple management’s decision to cease reporting unit sales as if it were a sign of weakness.

      0
      October 29, 2019

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