Apple (AAPL) Launches Most Important of Cook Era - Susquehanna

Susquehanna analyst Chris Caso reiterated a Positive rating and $115 price target on Apple (NASDAQ: AAPL) following the launch of the iPhone 6, iPhone 6 Plus, Apple Watch, and Apple Pay.

Caso commented, "AAPL product launches yesterday were clearly the most important in the Tim Cook era, which we think will put to rest concerns about AAPL losing their ability to innovate. From a stock perspective, we think pricing details on iPhone 6 were most important, and support our view that blended iPhone ASPs should rise, driving revenue upside and keeping margins intact despite the new phones’ higher cost. Payments represent a significant innovation (and confirm content gains for NXPI), another factor to drive the AAPL ecosystem. Regarding Apple Watch, we think pricing and availability will be viewed slightly disappointingly in the near term, but don’t expect this to have a significant effect on estimates. We think the value proposition of the watch will become more apparent as developers begin to write apps for this device, unlocking the innovation of AAPL’s developer community. While the stock did appear to exhibit the mild sell-the-news reaction we had feared, we see a path to estimate upside and would therefore buy weakness."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $97.99 yesterday.

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