Tigress raises Apple target $16 to Street-high $198

From a note to clients by veteran analyst Ivan Feinseth snagged by Yahoo! Finance:

The 5-star analyst counts “strong product demand, new product introductions, and accelerating Services revenue” as the basis for his bullish take, all which will “continue to drive significant revenue and Economic Profit growth.”

If it’s product and innovation you’re after, then you might as well head straight to the iPhone – or more specifically, the iPhone 13, to be launched this Friday (Sep 24).

“For relatively the same price points as comparable iPhone 12 models,” says the 5-star analyst, “The new iPhone 13 models give consumers higher resolution cameras and screens, faster processors, increased functionality, more storage, and longer battery life.”

Maintains Strong Buy and raises target to $198 from $182.

My take: That’s one way to get attention. Are you listening, Daniel Ives?

6 Comments

  1. Gregg Thurman said:
    What say you Incremental Saccocrap?

    6
    September 24, 2021
  2. Robert Paul Leitao said:
    In a note released today, Dan Ives has reiterated his firm’s outperform rating on Apple and current $185 price target. At $185 per share, the market cap would definitely be in the range of the $3 trillion target he mentioned during our recent Apple 3.0 Zoom meeting.

    4
    September 24, 2021
  3. Fred Stein said:
    Dan’s carefully curated data and deep insight sets his target, not peer pressure.

    Likely next year, Apple’s 5G modem will stimulate more upgrades in PTs and iPhones in the hands of users.

    3
    September 24, 2021
  4. Gregg Thurman said:
    Likely next year, Apple’s 5G modem will stimulate more upgrades in PTs and iPhones in the hands of users.

    I’ve reread the published accounts of the Apple/Qualcomm agreement several times. It took many readings to get what I believe is a reasonable release timeline

    Apple’s Qualcomm agreement (effective April 2019), with undisclosed payment to Qualcomm, gave Apple a six year license of Qualcomm technology. Coupled with that was a “multi-year” purchase agreement of Qualcomm radios and an option to extend the license for two additional years.

    Remember that Qualcomm sold its product in two parts. The first was the radio itself, the second (the expensive part) was for the patent licenses that allowed the buyer to use the radios.

    I think the undisclosed payment settled debts between the two parties and prepaid the license fees for six years (ending in 2025) regardless of who’s radios were installed in Apple products.

    There’s a saying among new product developers that development will take twice as long and cost twice as much as budgeted. I think the two year license extension option is a safeguard should Apple encounter 5G development problems that can’t be resolved in the initial 6 year period.

    Unlike my earlier thinking, Apple is not obligated to buy Qualcomm radios throughout the licensing period. This means Apple could incorporate a fully integrated 5G radio into Apple silicon, when Apple is ready to do so.

    So the question becomes: how long will it take for Apple’s silicon engineers, coupled with Apple’s purchase of Intel’s cellular division and successful recruitment of Qualcomm engineers for its new San Diego (Qualcomm’s backyard) research facility to accomplish that integration. I’m thinking 3 years minimum (half the initial license period) putting the earliest product release at September 2022 (iPhone 14).

    Adjusting for inevitable development delays I believe 2024 is a more reasonable release expectation.

    As for my highly desired 5G equipped AirPort Extreme, I don’t think Apple would want the added expense of Qualcomm’s license fee to it’s COGS. That would put an anticipated release date at 2025, unless the license extended only to current Apple products, in which case a 5G equipped AirPort Extreme could be released earlier.

    7
    September 25, 2021
  5. Gregg Thurman said:
    It’s important to note that there won’t be a significant reduction in Apple’s 5G enabled products until the license agreement has been fully amortized. FY2025?

    It’s also important to note that 2025 is when most analysts believe Apple will announce an autonomous vehicle/system.

    I see an Apple autonomous system using Apple silicon as enabling instantaneous vehicle to vehicle “I am here and this is my intent” communications (licensed to other autonomous vehicle manufacturers).

    8
    September 25, 2021
    • Dan Scropos said:
      Two of the best insights I’ve read in a long time. Thanks for sharing. It’ll be fun to see how it all shakes out.

      3
      September 25, 2021

Leave a Reply