Tigress' Ivan Feinseth is a 'Strong Buy' on Apple

From "Apple Stock Still Has Plenty of Upside, Analyst Says. Here’s Why." ($) posted Tuesday by Barron's:

Pointing to strong product demand and revenue growth for its services segment, Tigress Financial Partners’ Ivan Feinseth maintained a Strong Buy rating on Apple stock (ticker: AAPL) in a note on Monday. He wrote that the company’s most recent quarter featured strong demand for the iPad, Mac, and wearables, while services had a record quarter with help from gains across several of its offerings...

Though iPhone sales fell during that quarter amid weakness in China, Feinseth expects iPhone growth to pick up in the first quarter of fiscal 2021.

“Tailwinds should continue to build with the ramp-up of sales of the 5G-enabled iPhone 12, the recently announced Apple Watch 6, and its new line of MacBooks with Apple’s first internally produced M1 Processor, which is receiving rave reviews for its speed, capabilities, and reduced production costs,” he wrote.

Feinseth also points to momentum in the App Store, with increasing momentum for Apple Arcade, Apple Music, Apple TV+, and the Apple credit card. He thinks services revenue could exceed $60 billion in the coming 12 months, something he thinks can double in the next few years as penetration improves within its huge base of product users.

“AAPL’s ongoing commitment to return significant cash to shareholders will continue to provide stability in volatile markets and enhance the stock’s total return,” he wrote. “We believe significant upside in the shares exists from current levels and continue to recommend purchase.”

Initiates Strong Buy rating, no price target. 

My take: Feinseth is new to me. But a Strong Buy is a Strong Buy.

8 Comments

  1. Mordechai Beizer said:
    Here’s a thought. Apparently a number of companies are declaring special dividends payable before year-end. One theory is that they are doing this in anticipation of an increase in dividend tax rates next year. I wonder if Apple would consider a special dividend for some of its excess cash.

    0
    November 24, 2020
    • John Konopka said:
      Maybe. A few years back at a shareholder meeting Tim Cook specifically ruled out a special dividend. Maybe times have changed.

      0
      November 24, 2020
  2. Gregg Thurman said:
    Ivan’s points are well grounded, unlike many we are familiar with (and get far more coverage from CNBC than does Ivan).

    3
    November 24, 2020
    • Fred Stein said:
      Agree. I like the way Ivan thinks and writes.

      1
      November 24, 2020
  3. Fred Stein said:
    I like Ivan’s approach. No need for details or even PT.

    No one should make investment decisions based on extrapolations of ephemeral supply or demand data, which are subject to all sorts of errors. Nor should investments be based on a PT 12 months out.

    1
    November 24, 2020
  4. Tommo_UK said:
    Meanwhile we await the latest from Toni about how fluctuations in the component supply chain “people he knows who are familiar with the matter” tell him indicate something or other about iPhone sales.

    Word on the grapevine is Rod Hall’s disappointed in the new Apple Silicoln . Allegedly it’s speed has guaranteed terrible sales for MacBooks going forward, as the built in obsolescence factor which used to drive upgrades is gone thanks to the Warp Speed technology (all due to Trump’s Make Apple Great Again policy) of the M1, compared to similar speed intel chips which need cooling to -80 celsius to keep up. His take: MacBook upgrade sales after the initial surge are doomed, doomed. He’s recommends sticking to tried and tested: Microsoft (thanks to its virus expertise, and intel with its active-
    deep refrigeration super-cooled processors.

    Meanwhile Robin Hood traders have heard cruise liners may be at sea again in March and are falling over themselves to dump “overpriced high earning tech” to buy into dock-bound rust buckets moored in Miami waiting to go on the first White Party cruise they can book.

    Nincompoops.

    4
    November 24, 2020
    • Gregg Thurman said:
      Airline booking sites are reporting 50+% increase in searches since vaccine announcements last week. Couple that with an apparent certification by the FAA and EASA of Boeing’s 737 Max portends strong economic expansion in 2H 2021.

      1
      November 24, 2020
  5. bas flik said:
    i like ivan
    i made a new analyses of our apple sales for month juli till now
    i took all sales for the period juli till nov = 100%
    each month you’ll see the share of sales for that month of total share and avg purchase price.

    month sales avg purchase price
    7 – 16,75% – € 722
    8 – 13,18% – € 720
    9 – 13,22% – € 700
    10 – 30,20% – € 772
    11 – 26,65% – € 794
    avg price since 6 nov is € 804

    so an increase in volume and price.
    economically almost impossible
    apple defies economic laws.
    reverse price elasticy
    only dutch VOC in 17th century was more powerful.
    but they had to use canons and guns to enforce trade monopoly
    apple did it all based on free will.

    5
    November 24, 2020

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