Pokemon Go Could Add $3B to Apple's (AAPL) Revenue - Needham & Company

Needham & Company analyst Laura Martin reiterated a Strong Buy rating and $150 price target on Apple (NASDAQ: AAPL), saying Pokémon Go may add $3 billion to Apple's revenue.

Martin commented, "Since July 6 when the augmented reality game Pokémon Go was introduced in the US, Nintendo’s market cap has risen by $20B. By contrast, AAPL's mkt cap rose by only $2B between July 6-18 (above the S&P500’s move). We estimate that APPL could generate $3B of incremental high-margin revenue from Pokémon Go over the next 12-24 months. As background, Candy Crush generated more than $1B of revenue in each if 2013 and 2014 and Pokémon Go’s ratio of paid users to total users is 10x higher. We believe Pokémon Go underscores 2 underappreciated investment qualities of APPL: 1) AAPL is THE global distribution platform for mobile content winners (not just Pokémon Go), with the wealthiest consumers; and 2) for Pokémon Go, we believe APPL keeps 30% of Pokémon GO’s revenue spent on iOS devices, suggesting upside to earnings, plus valuable options on future hits."

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 $99.87 yesterday.

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