Wells Fargo raises Apple target $15 to $155

From a note to clients by Aaron Raker’s note to clients snagged Tuesday by TheFly:

Wells Fargo analyst Aaron Rakers raised the firm’s price target on Apple to $155 from $140 and keeps an Overweight rating on the shares.

The China Academy of Information & Communications Technology this week released the December smartphone shipment data for December, which reflected another positive data point for Apple’s iPhone 12 cycle, Wells Fargo analyst Aaron Rakers tells investors in a research note. China total mobile phones shipped stood at 26.6M in December 2020, a decline of 13% year-over-year and 10% month-over-month, says the analyst. “Continued positive Apple data points” leaving Rakers increasingly comfortable that Apple will post upside to current expectations. He also likes the company’s “continued strong capital allocation story.”

Maintains Overweight rating, raises price target to near-high $155 from $140.

My take: I’ve asked to see the note.

10 Comments

  1. bas flik said:
    “Hyundai shares jumped 19.4% this past Friday on speculation that Apple might work with the Korean auto maker on the iCar”

    looks like apple is really working on a car.
    20% jump not very likely if there is no substance in the rumour.

    2
    January 12, 2021
    • Robert Davison said:
      Ummm, no. Just because many people invest in a belief doesn’t make it so whether for cars or electoral votes (non-partisan comment, I’m not American).

      2
      January 12, 2021
  2. Gregg Thurman said:
    Price targets seem to be coalescing around $150. April earnings?

    1
    January 12, 2021
    • Robert Paul Leitao said:
      Gregg: Considering the large amounts of cash Apple is committed to deploying for share repurchases, the interests of long-term shareholders may be best served if the share price doesn’t move higher for a while. For long-term Apple investors, patience can a powerful resource for securing prosperity.

      2
      January 12, 2021
      • Gregg Thurman said:
        Respectfully I don’t see it that way. Long term shareholders, who elect to remain long term shareholders will benefit far more, in the long term, from appreciation in AAPL, than they will by increases in dividend yield brought about by Apple’s buybacks.

        2
        January 12, 2021
        • Gregg Thurman said:
          Something to consider post earnings, is that historically AAPL’s performance between JAN earnings and APR earnings is better than any other quarter of the year.

          I have no idea why this is so. It certainly isn’t caused by AAPL’s guidance, which historically is for an about 30% drop in revenue from DEC results.

          I don’t see that kind of drop this year. There is just too much upward pressure on revenue coming from Services, iPhone, Mac and Accessories sales spilling over into the March quarter.

          What that will do for AAPL is impossible (for me) to quantify in the near term.

          0
          January 12, 2021
          • Robert Paul Leitao said:
            Gregg: The December quarter is almost always Apple’s largest revenue quarter and it can “set the pace” for revenue and earnings growth for the remainder of the fiscal year. Also, whatever guidance Apple may offer during the December quarter conference call in January may reveal the forward momentum on revenue growth, often confirming the pace of iPhone revenue growth through the first six months of the fiscal year. IIRC, you’ve mentioned you develop your fiscal year models based on December quarter results.

            0
            January 12, 2021
        • Robert Paul Leitao said:
          Gregg: I never said as a long-term shareholder I didn’t want the share price to move higher. That’s the point of owning the shares. My point is, as long as Apple is committing huge sums to repurchasing shares, I have no short-term interest in the share price moving appreciably higher. There’s plenty of time for that as Apple approaches a net cash neutral position. I intend to be a shareholder far longer than Apple will have in place today’s massive share repurchase program.

          1
          January 12, 2021
  3. Robert Paul Leitao said:
    By and large, price targets will be revised again following December quarter results. From a story synopsis I read yesterday, Goldman Sachs has a different view on iPhone demand in China. We’ll know which firm is closer to the mark before the end of the month. Considering the many variables and possible economic policy changes that will impact the market and share prices over the next few months, I’m more interested in each analyst’s narrative and fundamentals analysis than their current price target.

    0
    January 12, 2021
  4. Bart Yee said:
    I found an interesting article about CAICT numbers and 5G sales. I’ve sent the link to PED and hope to see a blog post about this soon. Our favorite company may have had a lot to do with the numbers.

    Another link discusses International (ie Apple) sales in Q1 2021 in China. Also sent.

    1
    January 12, 2021

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