Apple (AAPL) PT Raised to $150 at Goldman Sachs

Goldman Sachs raised its price target on Apple (NASDAQ: AAPL) to $150.00 (from $133.00) while maintaining a Buy rating.

Analyst Simona Jankowski comments "We are increasingly confident in the outlook for Apple’s iPhone “8” cycle in the second half of the year, and as a result are raising both our forecasts and our target price. Last week’s industry datapoints (e.g. from optical supplier Lumentum) suggest that the inclusion of 3D sensing functionality is increasingly likely, which could enable a robust augmented reality (AR) feature set that we believe will be a key differentiator for the 10-year anniversary iPhone. This is a significant step-up in innovation vs. the prior two product cycle, especially when viewed in conjunction with the potential significant form factor change enabled by the move to an OLED display (e.g. removal of the bezels and the home button). Our supply-chain checks also suggest that there will be a third 5.8” SKU that sits at an ASP above existing 5.5” and 4.7” starting price points of $649 and $769. As we detail below, our CY17/CY18 iPhone estimates move to 230.0mn/235.9mn vs. 227.3mn/231.5mn previously. Given accelerating earnings growth across the next two years, we also increase our target multiple to 16x from 14x to better capture that inflection"

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