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Global Equities Boosts PT on Apple (AAPL) to $130; New Era Just Beginning

September 22, 2014 6:30 AM EDT
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Price: $173.72 +0.64%

Rating Summary:
    40 Buy, 24 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Apple (Nasdaq: AAPL) is on watch Monday as Global Equities Research raised its price target on the stock from $115 to $130, while maintaining an Overweight rating.

Analyst Trip Chowdhry noted the following key points on the call:

• Innovation is back at Apple and we have only just scratched the surface. It’s the beginning of a New Era

• Apple’s iPhones, iPads, Apple Watch, Apple Pay, and more category products that are yet to come, create multi-yearmulti-products growth drivers for Apple

• Apple’s every new innovation comes with a Developer SDK and its own AppStore, which moves the whole Apple Ecosystem forward and guarantees its success

• Every new version of an Apple product is much better than its previous version and handsomely outsells the previous version.

• New Users, New Markets, Upgrades, Market-share Wins, and New Partnerships like the ones with IBM, Facebook, Twitter etc., are Apple’s revenue catalysts for sustained growth.

• Apple’s innovative Touch-ID + Secured Element (SE) on Device Chip + Critical Mass of users + Relationships with Payment ecosystem, are Apple’s secret to success with Apple Pay, which is a multi-year growth driver. Where competition has failed, Apple will be massively successful

• Apple’s invention of Swift Programing language helps developers easily create compelling applications faster, which further strengthens Apple’s ecosystem: more applications will lead to more Apple AppStore Revenues and a stronger ecosystem

• Apple’s relationship with IBM is going to drive iPhones and new iPads adoption within the enterprise, but that is probably a 3Q’2015 onwards growth story

• With the exit of Sony from PC business, Apple Mac is expected to increase its market share by ~3%

• New Apple iPhone6 is off to a very strong start

• Increasing estimates and increasing our 12 – 18 months price target on Apple to $130 from $115; based on a EV/OpInc multiple of 11x FY2015E Operating Income estimates of $59.2 Billion; and EV/OpInc multiple of 10x FY2016E Operating Income estimates of $64 Billion

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

Apple closed at $100.96 yesterday.



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