BMO Capital Starts Apple (AAPL) at Outperform

BMO Capital initiates coverage on Apple (NASDAQ: AAPL) with a Outperform rating and a price target of $145.00.

Analyst Tim Long commented, "We are launching coverage of Apple with an Outperform rating and a price target of $145. We believe iPhone units will grow at an 8% CAGR from 2015 through 2019, with upside potential to more than 10%. We leverage our Global Handset Model in our analysis. Each year an increasing percentage of units comes from iPhone upgrades (60% in CY2015), but we believe switchers from mass market Android are the most critical to watch. We are encouraged that the high-end smartphone segment is seeing accelerating growth in 2015 after a few years of sharp deceleration. We are positive on the growth drivers of several other businesses as well. We expect share gains to continue for Macs, we should see signs of stabilization in iPads, we expect strong growth off a small base for watches, and we believe services will be a steady grower with the installed base."

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 $115.62 yesterday.

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