Apple (AAPL): Profit Taking Could Prove Costly, Says Cantor

Cantor Fitzgerald reiterated a Buy rating on Apple (NASDAQ: AAPL) with a price target of $123. Analyst Brian J. White thinks taking profit in the stock was shortsighted and could prove to be costly for investors.

"We Believe Apple is in the Midst of Another 'Super Cycle'," said White. "Leading up to Apple's special event, there seemed to be a commonly held view amongst investors to take profits; however, we believe this is shortsighted and could prove costly."

"Similar to "super cycles" that began in 2001 (iPod), 2007 (iPhone) and 2010 (iPad), we believe Apple is in the midst of another "super cycle" that begins with the rapidly growing "phablet" market via the iPhone 6 Plus and extends into the wearable category in early 2015 with Apple Watch. Already, we believe there is an insatiable appetite for the iPhone 6 Plus as demonstrated by rapidly expanding pre-order shipment times and we believe Apple Watch will prove to be a home run with the fastest, new product, first-year unit sales volume in the company's history, giving Apple a foothold in what we believe will be a large, wearable tech market. As more "things" become computers, we believe Apple's expertise in designing software, hardware and services to work together will prove invaluable. We also doubt Apple is finished innovating in new product categories. For example, we still believe there is a more robust Apple TV on the horizon that can reinvent the industry," he added.

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 $101.66 yesterday.

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