Apple (AAPL) Price Target Raised to $160 at FBN

FBN Securities maintained an Outperform rating on Apple (NASDAQ: AAPL) and raised its price target to $160.00 (from $140.00). The change follows Q2 results. Analyst Shebly Seyrafi was impressed by iPhone and greater China sales.

"The strong iPhone sales were driven by strong sales in Asia (China iPhone sales grew over 70% Y/Y), good uptake of the iPhone 6/6+ (~20% of the installed base is estimated to have upgraded to these products), and a noticeable increase in “switchers” from Android. The strong iPhone 6/6+ sales also helped drive iPhone ASP (now at $659) up 8% Y/Y (though down 4% Q/Q from $687 in FQ1). AAPL missed consensus, however, in both iPad and MAC sales, and the 29% Y/Y iPad revenue decline was concerning. iPad is being cannibalized by larger-screen iPhones as well as Macs, and this trend does not appear to be changing anytime soon," said Seyrafi.

"AAPL also disclosed that it expects its Apple Watch product to have lower GMs than its corporate average (which was 40.8%). Some analysts may have believed that the Apple Watch GM would be closer to the iPhone GM (which we model at around 47%). We are modeling AAPL to ship ~9M Apple Watch units in FQ3 and FQ4 and 16.5M units in C2015," added the analyst.

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 $132.65 yesterday.

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