Apple (AAPL) PT Raised to $127 at UBS as iPhone 7 Searches Better than 6s
- Wall Street hits record high for third day in a row
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
- Exclusive: Japan's TDK in talks to buy iPhone supplier InvenSense - sources
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
UBS analyst Steven Milunovich reiterated a Buy rating and boosted estimates and his price target on Apple (NASDAQ: AAPL) to $127.00 (from $115.00) after the firm's Evidence Lab analysis of search volumes around announcement suggest iPhone 7 interest less than for the iPhone 6 but better than the 6s. In addition, most carriers saw pre-order growth. Apple said it is sold out of the Plus, and primary competitor Samsung's Note 7 suffered a recall.
While positive, Milunovich said he wouldn't get carried away. "Verizon said it isn't seeing unusual demand, and we don't know what is happening in China, where there have not been aggressive promotions," he commented. It will come down to how many of the F15 bubble of iPhone buyers will upgrade, Milunovich added.
The firm is increasing their upgrade estimate from 41% to 44% and their F17 EPS estimate to $9.30 from $9.00.
While bullish on iPhone numbers and estimates, the firm is more cautious near-term on the stock, noting it is following a predictable near-term path. "Apple's stock has been following the pattern of previous iPhone announcements. It tends to trade off before the announcement then move up between announcement and availability, which was last Friday. In fact, the stock outperformed by 8 points the past two weeks. Now history suggests it could fade the next two weeks then move up into earnings. In the absence of first weekend sales data from Apple, carrier comments and speculation have filled the information vacuum."
Shares of Apple closed at $113.58 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- MKM Partners Raises Price Target on Ciena (CIEN) to $30 Following 4Q
- Jefferies Raises Price Target on NeuroDerm (NDRM) to $42
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!