Loop Capital has raised its Apple target $24 to $155

From Barron’s’ “Apple Stock Set for ‘Really Big Year’ With Strong iPhone and Mac Demand” ($) posted Friday:

Apple stock received a thumbs up Friday from Loop Capital analyst Ananda Baruah, who repeated his Buy rating on the tech giant and boosted his target price to $155 from $131. The call comes ahead of the company’s upcoming December quarter earnings report, due after the close on Jan. 27.

Baruah writes in a research note that he expects a “really big year” for Apple (ticker: AAPL), and the signs should be clear with the upcoming earnings report. He thinks there could be material upside to Street numbers for both the near term and throughout calendar 2021, driven by strength in both iPhones and Macs. Baruah also thinks the company could see upside from healthy growth in iPad, AirPod, Watch, and Services.

The analyst notes that his outlook for iPhone shipments is materially above the Street—he sees 80 million units for the December quarter, 57 million for the March quarter, and 50 million for the June quarter; consensus estimates are 76 million, 50 million, and 42 million, respectively. Likewise, Baruah’s revenue forecast for iPhones is above Street consensus.

Baruah also says that his outlook is “materially more bullish” than the Street for Mac sales, asserting that there should be “much longer and stronger demand” beyond the tailwind from the work from home trend. He sees Mac sales of 7.3 million units in the December quarter, above consensus at 6 million units.

Maintains Buy rating, raises target to $155 from $131.

My take: Sorry I missed this last Friday when, as Barron’s’ Erik Savitz points out, the stock fell 0.5% to $128.29 despite the upbeat note.

3 Comments

  1. Gregg Thurman said:
    Using his December quarter estimate as the base quarter, the relationship of Baruah’s quarterly estimates to each other, follow historic trend.

    1
    January 19, 2021
  2. Gregg Thurman said:
    With Baruah’s new target it look like $150/$155 is the new normal. That’s OK with me.

    1
    January 19, 2021
  3. Jerry Doyle said:
    “…. With Baruah’s new target it look like $150/$155 is the new normal. That’s OK with me.”

    Last August 28 when Apple split 4:1 basis I predicted a $150 TP by the 2Q earnings call in April 2021. That prediction was an outlier at the time and some scoffed at it, but I felt so confident because there was a new behavioral and societal normal evolving in the world of work and learning from home. That recognition settled in over the past four months to where many professional analysts embrace the new realization of an evolving work and learning environment. Since my initial TP Apple has introduced its M1 Chip whose benchmarks prove Apple Silicon outclasses nearly all others. We need to see our $150 TP this coming spring. I remain confident that we will see it. I since have moved on estimating when Apple hits $200. This Barron’s article on Ananda Baruah’s narrative solidifies my thinking Apple is a $200 stock by the end of Q2 2022.

    1
    January 19, 2021

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