Apple Gets Price-Target Hike Before iPhone 8 Upgrade Cycle – Investor's Business Daily

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Investment bank Canaccord Genuity on Tuesday raised its price target on Dow component Apple (AAPL) stock, saying the upcoming iPhone 8 will fuel a big upgrade cycle and be a catalyst for shares.

Canaccord analyst Michael Walkley reiterated his buy rating on Apple and upped his price target to 180 from 165.

Apple was down 0.5%, near 154.80, in morning trading on the stock market today. It hit a record high of 156.65 on Monday.

“We anticipate strong demand for new iPhone products launching in September and have increased our 2018 iPhone estimates, leading to our increased price target,” Walkley said in a report. “However, we believe consumers have started to delay iPhone purchases ahead of the anticipated new devices, leading us to slightly lower our near-term estimates.”

He lowered his iPhone sales estimate for Apple’s fiscal 2017, which ends Sept. 30, to 219 million units from 223 million. But he raised his fiscal 2018 iPhone sales estimate to 248 million from 242 million.

Apple is likely to end calendar 2017 with an installed base of over 635 million iPhone users worldwide, he said.

Apple is expected to unveil its 11th-generation iPhone, the rumored iPhone 8, in September. That handset is expected to feature a 5.8-inch borderless OLED display, glass-sandwich design, wireless charging and augmented-reality capability.

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Apple also is expected to introduce an upgraded version of its current iPhone 7 series handsets, which could be called the iPhone 7S series.

Also Tuesday, Guggenheim analyst Robert Cihra reiterated his buy rating and price target of 180 on Apple stock.

“We see Apple approaching more than just a one-year but rather multiyear iPhone upgrade cycle as its aging installed base is met by new technologies,” Cihra said in a report. He also sees average selling prices rising meaningfully with the iPhone 8.

Meanwhile, investment conglomerate Berkshire Hathaway (BRKB) reported Monday that it more than doubled its holdings in Apple, a component of the Dow Jones industrial average, during the first quarter to 129 million shares, worth $18.6 billion as of March 31.


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